We continued to invest in our focus markets through utilizing FMO’s own capital, public funds and mobilized funds. Through these investments, we contribute towards the SDGs.
US$20 million debt | FMO | SDG 8,13
Ecuador has been hit severely by COVID-19, leading to a collapse of the healthcare system in its largest city, Guayaquil. Together with the oil price drop and already-high fiscal deficit, this pushed Ecuador into default. During these extremely uncertain times, FMO signed two high-impact facilities with existing customer Banco Bolivariano. Via the first (US$10 million subordinated) loan, we helped improve the bank’s capital base, with the proceeds of this loan earmarked for financing SMEs. With the second facility (a US$10 million senior loan), Banco Bolivariano will only finance green projects.
US$75 million debt | FMO | SDG 8,13
South Africa’s FirstRand Bank is looking to further develop its climate finance portfolio. With our green finance support, the bank can expand its customer base to also include projects which focus on adaptation and resilience, along with water resources, treatment and infrastructure projects. FMO’s US$75 million green loan is part of a US$225 million syndicate led by IFC, making it the first dedicated green loan provided in the country. The transaction gave FMO the opportunity to develop a deeper relationship with FirstRand Bank, the second largest bank in South Africa and one of the leaders in South Africa’s climate finance sector.
US$7.5 million equity |Dutch Fund for Climate and Development |SDG 8,10,13)
Many smallholder farmers in Africa leave large parts of their land untouched, and only plant what they need to survive. Komaza offers these farmers the option to plant fast-growing trees, like eucalyptus and melia (a native, drought-resistant species) on their untapped parts of land. This provides farmers with the opportunity to generate additional income over a longer period. This way, the forestry company addresses the large and fast-growing wood market in Africa while simultaneously helping Kenyan smallholder farmers out of poverty. FMO’s investment is funded by the Dutch Fund for Climate and Development (DFCD). We are already a shareholder in this company through the Dutch government fund Building Prospects.
€0.5 million development equity | FMO Ventures Program | SDG 10,13
Chad is one of the poorest and least-developed countries in the world. It has an installed energy generation capacity of 176MW, with only seven towns connected to the national grid. This makes Chad heavily dependent on expensive diesel generators, with households paying an average of 77 cents per kWh. ZIZ Energie aims to reduce this price to 40 cents per kWh and is developing ‘metro-grids’ which hybridize existing facilities with solar energy and battery storage. FMO’s co-investment with Energy Access Ventures marks the start of a larger investment round that will allow scaling of operations and improved green energy access.
US$35 million equity | FMO | SDG 8,10
AfricInvest is a longstanding partner of FMO and one of the pioneers of private equity in Africa, successfully investing on the continent through their North African and sub-Saharan Africa funds for over 25 years. AfricInvest IV aims to make growth-capital investments in mid-cap African companies that are well-positioned in their local markets and are poised to scale up operations as they expand outside their borders to become “regional champions”. By investing in AfricInvest IV, FMO can contribute to the economic growth and private equity market development across the African continent.
US$30 million debt | FMO + mobilized funds | SDG 8, 10
Indian micro and SME businesses have been badly hit by the outbreak of COVID-19. To support this important segment of the Indian economy, FMO provided a US$30 million term facility to Vistaar Financial Services. Vistaar is a Non-Bank Financial Institution which offers loans to small businesses in rural and semi-urban areas, for expanding working capital capacities. These companies find themselves in the ‘missing middle’ segment: they are too small to be served by the banks but too large to be served by the pure microfinance institutions, and require specific credit analysis, for which Vistaar has a competitive advantage.
€60 million debt (in Tunisian Dinars) |FMO + mobilized funds + capacity development |SDG 8, 10
Almost ten years after the start of the Arab Spring, Tunisia still suffers from socioeconomic challenges like high (youth) unemployment and economic inequality. Enda Tamweel is one of the few institutions in Tunisia offering (non-)financial services for un(der)served Tunisian entrepreneurs and households. FMO provided a syndicated loan to support Enda Tamweel to finance women, youth entrepreneurs, and farmers, which was set-up with hedging partner TCX, and under the FMO’s A/B loan structure. €39 million was syndicated to 5 funds, and we supported Enda Tamweel’s digitalization journey via a Capacity Development project to implement digital payment.
US$18 million debt |FMO |SDG 8,10
Sucafina is active across the coffee value chain, from farming to roasting. FMO supports Sucafina with a US$18 million loan for washing stations, coffee mills and warehouses in – among others - Uganda, Rwanda, Burundi, Tanzania, and Kenya. With this funding, Sucafina will be able to further expand its origination activities in Africa and provide direct support to smallholder farmers. Additionally, FMO’s Capacity Development program supports Sucafina in its Farmer Hub initiative to increase the number of smallholder farmers reached and assist them with growing speciality coffees, diversifying into other crops and access to banking services and markets. Previously we supported this customer through the Dutch government fund Building Prospects, since then its risk profile has evolved making financing on FMO’s balance sheet possible.
€30 million debt | FMO + mobilized funds | SDG 8
Anadolu Etap operates a sustainably integrated value chain of plantations for fruit production, cold storage warehouses, and processing facilities in Turkey. Anadolu Etap supplies fruits and produces fruit puree, concentrates, and juices that are sold throughout Turkey and 60 other countries. The produce comes from 5 million trees located on eight farms spanning over 3,000 hectares. The company also runs three juice concentrate factories and a packaging facility. Together with EBRD, FMO financed a €60 million term facility to help Anadolu Etap ensure continuous growth, despite the uncertainty caused by the COVID-19 pandemic.
€32 million debt | FMO | SDG 7,8
Côte d’Ivoire owns a set of old and inefficient power plants. FMO joined in a debt package of €303 million to develop, construct, and operate a 390MW combined cycle gas-fired power plant. Atinkou will provide the country with stable base load electricity to support economic growth and the development of intermittent renewable energy generation. The plant will be approximately 50% more efficient than the older plants, meaning it will produce the same amount of electricity with half the amount of gas.