As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record of empowering people to employ their skills and improve their quality of life. Each month we give an overview of the transactions we have signed.
Following the first debt transaction in December 2023, FMO strengthened its relationship with UGRO Capital Limited by providing INR 2,600 million (~USD 30 million) through Nonconvertible Debentures. Built on the mission to empower MSMEs and drive inclusive growth in India, UGRO Capital combines technology and data to provide an array of customised financial products to its clients through a multi-channel distribution network. The loan proceeds are earmarked for onward lending to underserved MSME segments like women, youth and rural MSME sub borrowers and microenterprises, thereby enabling better access to credit assistance and inclusion.
FMO has signed another high impact transaction with our existing relationship Ipak Yuli Bank (IYB) from Uzbekistan. IYB, a client since 2013, is a mid-sized bank and one of the market leaders in MSME finance. The new senior loan investment is an important next step in deepening this relationship. The new loan agreement is for USD 100 mln. The proceeds of the loan will be used by IYB in UZS and/or USD to finance eligible Green projects (25%) and eligible Micro business loans, and Youth and Female SMEs (100%), supporting FMO’s Reducing Inequalities and Climate Action strategic agenda points.Out of USD 100m, USD 70m will be kept on FMO-A balance sheet as own risk and USD 30m will be mobilized through P4i partners (FIM/URP) who will participate at or shortly after disbursements. Regarding the green component we note that up to 20% of the amount can be used by IYB to finance the “greening of their own operations and office(s)” which is part of their sustainability strategy.
I&M Bank Tanzania is wholly owned subsidiary of I&M Bank Limited,a publicly quoted company at the Nairobi Securities Exchange (NSE). I&M is a commercial bank offering a full range of corporate, SME and retail banking services. FMO provided a USD 10 mln loan to strengthen I&M’s funding base with long-term USD financing. • As I&M is a strong and well-reputed Tier 2 bank in Tanzania and a long-standing client of FMO, FMO is proud to support the bank's SME and corporate customers, which are a strong engine in Tanzania’s economy.
