Horizon Capital Catalyst Fund

Ukraine’s ongoing war has created a difficult investment climate, leaving many businesses with limited access to growth capital, particularly in sectors essential for rebuilding the economy. To help address this gap, FMO committed €10 million through a dedicated Ukraine allocation from the Dutch government’s Building Prospects Fund to the Horizon Capital Catalyst Fund at its first close. The fund invests equity capital into Ukrainian mid-sized projects and companies in reconstruction-linked sectors such as energy, digital infrastructure, and construction materials.

FMO’s additionality is primarily financial. By acting as an anchor investor alongside other development finance institutions, FMO helps the fund attract further investment from both public and private investors. This signaling role is especially important in Ukraine’s current environment, where fundraising is challenging. The investment contributes to closing an equity gap and mobilizing capital needed for reconstruction and economic recovery. The fund also follows a gender-focused approach and is labelled 100 percent RI.

Beyond financing, FMO works with the fund manager Horizon Capital to strengthen environmental and social risk management systems. This helps ensure investments are managed responsibly in a complex operating context, supporting sustainable and resilient private sector development.

First National Bank Zambia Limited

Zambia’s economy has faced significant challenges in recent years. Following the government’s debt default in 2020 and a severe drought in 2024 that caused widespread power shortages and sharply reduced harvests, many businesses have struggled to access affordable, long-term financing, especially in US dollars.

To help address this gap, FMO is providing a US$50 million senior loan to First National Bank Zambia (FNBZ), of which USD 20 million is currently committed. The funding will support FNBZ in expanding loans to businesses investing in climate mitigation and adaptation measures, including renewable energy, sustainable agriculture and smart irrigation systems. The investment is labelled 100 percent Green and 100 percent RI.

FMO’s additionality lies in providing long-term US dollar funding at a time when such financing is scarce in Zambia. This enables local entrepreneurs to invest in solutions that help them respond to climate stress and reduce their dependence on unreliable power supply. Thereby, FMO is crowding in institutional investors in the uncommitted tranche, bringing back commercial capital into the Zambian banking sector for the first time since the sovereign default.

Beyond financing, FMO is working with WWF to provide technical assistance to FNBZ. This support helps the bank strengthen its environmental and social risk management and build expertise in financing climate adaptation projects, raising standards and contributing to long-term market development in Zambia.

Stichting Hivos Triodos Fonds

Small- and medium-sized enterprises (MSMEs) play a vital role in food security, job creation, and the transition to cleaner energy in many developing countries, yet they often struggle to secure financing. Through the Dutch Fund for Climate and Development (DFCD), FMO is providing a €20 million loan to Stichting Hivos-Triodos Fonds, an impact fund that helps address this gap primarily through investments in local impactful SMEs across Africa, Asia, and Latin America. Its portfolio focuses on agribusiness, sustainable food production, and renewable energy solutions. These are all areas essential for improving livelihoods and reducing inequalities.

By investing in the fund, FMO indirectly reaches smaller businesses and smallholder farmers that are typically beyond the scope of direct financing and/or lack access to finance. The investment supports climate-friendly agricultural practices and renewable energy solutions, including solar-powered irrigation. The transaction is labelled 100 percent Green and 100 percent RI.

FMO’s additionality is both financial and ESG-related. The funding helps close a financing gap in sectors perceived as higher risk and enables the fund to expand its portfolio. By participating in a more risk-bearing position, FMO helps mobilize additional funding from other partners. Beyond financing, FMO contributes technical assistance to strengthen environmental and social risk management and supports training that enables businesses to invest in climate-resilient solutions, fostering a more inclusive and sustainable local economy.