1 Corporate information

FMO was incorporated in 1970 as a public limited company with 51% of shares held by the Dutch Government and 49% held by commercial banks, state unions and other members of the private sector. The company is located at Anna van Saksenlaan 71, The Hague, The Netherlands and is registered under ID 27078545 in the Chamber of Commerce. FMO finances activities in emerging markets and developing economies to stimulate private sector development. In addition, FMO provides services in relation to government and public funds and programs.

The 2025 condensed consolidated interim financial statements of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (hereafter referred to as ‘FMO’ or ‘the company’) were prepared by the members of the Management Board and signed by all members of the Management Board and the Supervisory Board on August 13, 2025.

Financing and investing activities

FMO is the Dutch entrepreneurial development bank. We support sustainable private sector growth in developing and emerging markets by investing in entrepreneurs. We specialize in sectors where our contribution can have the highest long-term impact: Financial Institutions, Energy and Agribusiness, Food & Forestry (Formerly Agribusiness, Food & Water).

FMO’s main activity consists of providing loans, guarantees and equity capital to the private sector in the emerging markets and developing economies. Furthermore, FMO offers institutional investors access to its expertise in responsible emerging markets investing through its subsidiary FMO Investment Management B.V.

We arrange syndicated loans to mobilize funds, by bringing together investors – commercial banks and other development finance institutions (DFIs) - with FMO for structuring these transactions. This enables us to provide our clients with increased access to finance and more diversified lending, while giving our financial partners efficient opportunities to enter new markets.

Commercial fund management

FMO's subsidiary, FMO Investment Management B.V. (FMO IM), provides facility/investment management services for third party investment funds, which are invested in FMO’s transactions in emerging and developing markets. Through these funds FMO IM offers investors access to our expertise in responsible emerging market investing.

Services in relation to government and public funding

Apart from financing activities from its own resources, FMO provides loans, guarantees and equity capital from government funding, within the conditions and objectives stipulated in the agreements. The Dutch Government funding consists of subsidies provided under the General Administrative Law Act regarding MASSIF, Access to Energy Fund (AEF), Building Prospects (BP) and Dutch Fund for Climate and Development (DFCD). In addition, funding is provided by the UK Government for the Mobilizing Finance for Forests (MFF) program.

In 2024 FMO in conjunction with the European Commission (EC) and the Dutch Government established the DFCD Aya program which expanded on the existing DFCD program. This initiative resulted in FMO providing a loan commitment of €240 million to the program, of which €105 million is covered by financial guarantee from the EC. As a result of this financial interest, and taking into account the control FMO exercises over part of the program, FMO now consolidates the Land Use Facility (LUF) part of DFCD for financial reporting purposes.

Furthermore, the FMO Ventures Program and the LUF are programs involving FMO, the Dutch State and European Commission. The FMO Ventures Program facilitates investments in young startups and scale ups while LUF facilitates investments specifically in sectors relating to agroforestry, sustainable land use and climate resilient food production. These programs are structured entities that have been designed so that voting or similar rights are not a dominant factor in deciding who controls the entity and relevant activities are directed by means of contractual arrangements. FMO has control over direct relevant investment decisions and returns of these programs. Therefore, FMO has consolidated the FMO Ventures program and LUF on FMO’s statement of financial position.

FMO incurs a risk in MASSIF as it has an equity share of 2.16% (2024: 2.16%). In addition, the subsidy agreements for certain public fund programs contain provisions for FMO to return at least 75% of the subsidy amounts on the end dates of the respective programs. With respect to the remaining interest in MASSIF, and the full risk in the other government programs, FMO has a contractual right and obligation to settle the results arising from the programs’ activities with the Dutch Government. The economic risks related to these funds are predominantly taken by the Dutch Government, and FMO has limited control over policy issues regarding these funds. FMO receives a remuneration fee for managing these funds. Therefore, MASSIF is not consolidated in FMO's books.

The European Development Financial Institutions Management Company (EDFI MC) (of which FMO is one of the shareholders together with the other EDFIs) was established in Brussels to manage European Commission (EC) funding for the Electri-FI global facility, the Agri-FI investment facility and the Electri-FI country facility. FMO, as accredited entity for the EC, acts as delegatee (contractee) for the EC and has sub-delegated all operational activities related to these facilities to the EDFI MC. FMO receives a fee for facilitating these activities.

FMO was accredited by Green Climate Fund (GCF) and capitalizes on FMO's experience in mobilizing and enabling the private sector in developing countries towards low-emission and climate-resilient investments. In this context, FMO has received funds from the EU, USAID and the Dutch Government with the purpose to invest directly in Climate Investor One (CIO), a facility raised by FMO and managed by Climate Fund Managers (CFM). CIO and Climate Investor Two (CI2) are blended finance, capital-recycling facilities mandated with delivering renewable energy infrastructure projects in emerging markets that contribute to each phase of a project's lifecycle. FMO receives a fee for facilitating these activities.

Mobilising Finance for Forests (MFF) was established by the UK government as a blended finance investment program to combat deforestation and other environmentally unsustainable land use practices contributing to global climate change. Through MFF, FMO has been appointed by the UK government to invest up to €172.5 million across a mix of investment funds and direct investments in tropical forest regions in Africa, Asia and Latin America. In 2024 the Dutch Government participated in the program by providing a €32.4 million commitment to MFF. The economic risks related to these funds are predominantly taken by the UK and the Dutch Government, and FMO has limited control over policy issues regarding these funds, therefore, MFF is not consolidated in FMO's books.FMO receives a remuneration fee for managing these funds.

The table provides a summary of the programs managed by FMO on behalf of the Dutch Government, UK Government and the EC. It provides an overview of the contributions made by the originating parties to date and the nature of FMO's involvement.

The EC and FMO have an agreement for the risk sharing facility NASIRA for an amount of €100 million. The facility uses guarantees to allow financial institutions to on-lend to underserved entrepreneurs within the European neighborhood and Sub-Saharan Africa. The guarantees are split into a loss-sharing hierarchy that is allocated between the issuing financial institution, the EC and FMO. The goal of these guarantees is to allow local financial institutions to provide loans to groups they perceive as too risky to finance without guarantees.

The EC has provided €40 million in guarantees to the FMO Ventures Program, which aims to invest €200 million in both fund and direct investments in Africa, the European Neighborhood and Asia (excluding China). In addition to equity investments, the program will also have a dedicated technical assistance program, for which the EC is providing €6.5 million, to support investees of FMO Ventures Program and promote the development of local venture capital ecosystems.