Project detail - DOLMA IMPACT FUND II

Who is our customer

Dolma Impact Fund II (“DIF II” of Fund II”) is the follow-on fund of Dolma Impact Fund I, where FMO played an anchor investor role. DIF II has a strategy to provide scarce (growth) capital to small- and medium-sized enterprises (SMEs) in Nepal, in the healthcare, renewable energy, technology, and other sectors with high growth and impact potential. Fund II is established to generate private sector-led growth while creating positive social and environmental impact. The fund is managed by Dolma Fund Management (“Fund Manager” or “Dolma”)

What is our funding objective?

FMO’s investment in Fund II is from two government funds, MASSIF and Building Prospects. The objective of the investment is to continue supporting the first-time fund manager, Dolma, and assist the team in deploying capital towards impactful transactions that result in both economic and social impact.

Why do we fund this investment?

Fund II invests in Nepal which is one of poorest 55 nations in the world and hence is classified as Least Developed Country (“LDC”). Supporting investments in LDCs is one of the core strategies of FMO and MASSIF. In addition, Dolma is one of the first private equity (“PE”) fund managers focused on Nepal and has played a key role in developing the PE sector in the country. Fund II’s strategy of investing in renewable energy in a country that has an energy deficit and investing in companies that need capital to grow alongside its economy (and hence simultaneously boosting it) touches another cornerstone of FMO’s strategy.

What is the Environmental and Social categorization rationale?

The investment is categorized E&S category A, as the fund may invest in hydropower. With the help of FMO's investment and (still ongoing) capacity development support, the fund manager has built up E&S capacity (including a dedicated E&S Manager and a dedicated E&S Analyst) and is enabled to mitigate and manage E&S risks, and to contribute to responsible hydropower development in Nepal. With the realization of this 2nd fund, the dedicated E&S capacity will be further expanded.

More investments

Date	Total FMO financing
12/3/2021	EUR 0.20 MLN

Sub investments

Disclaimer

This data is updated annually so some investments might no longer be in FMO’s portfolio, while some newer investments may not yet be shown.

Name	Country	Region	Sector
Wordlink Private Limited	Nepal	ASIA	Diverse Sectors
Foodmandu Pvt Ltd	Nepal	ASIA	Diverse Sectors
Chirayu National Hospital Pvt Ltd	Nepal	ASIA	Diverse Sectors
Setikhola Hydropower Ltd	Nepal	ASIA	Energy