1 Corporate information

The Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (hereafter referred to as ‘FMO’ or ‘the company’) was incorporated in 1970 as a public limited company with 51 percent of shares held by the Dutch Government and 49 percent held by commercial banks, state unions, and other members of the private sector. The company is located at Anna van Saksenlaan 71, 2593 HW The Hague, The Netherlands and is registered under ID 27078545 in the Chamber of Commerce.

The 2026 condensed consolidated interim financial statements of FMO 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, 2026.

Financing and investing activities

FMO is the Dutch entrepreneurial development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in entrepreneurs. FMO specializes in sectors where its contribution can have the highest long-term impact: Financial Institutions; Energy; and Agribusiness, Food & Forestry.

FMO’s main activity consists of providing loans, guarantees, and equity capital to the private sector in 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..

FMO arranges 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 FMO to provide clients with increased access to finance and more diversified lending, while giving financial partners efficient opportunities to enter new markets.

FMO's financing and investing activities are not materially impacted by seasonality. Increased deal volumes can occur in the last months of the calendar year, however the main drivers of FMO's results from the lending portfolio and PE portfolio are not subject to seasonality.

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 its expertise in responsible emerging market investing.

Services in relation to government and public funding

FMO’s activities are financed through three main sources: the balance sheet, public funds (government and other public funding programs we manage), and direct mobilized funds (capital mobilized from public and private co-investors). Public funds enable FMO to invest in higher-risk markets and sectors, in line with the specific objectives agreed with funding partners. Through mobilization, FMO attracts additional capital to scale investments and broaden the Bank's impact. While FMO's own balance sheet remains the core source of financing across sectors and products, not all investments are financed directly by FMO, and the related risks may be shared with or fully borne by the funding partners, as applicable.

Apart from financing activities from its own resources, FMO provides loans, guarantees, and equity capital from government and public funding, within the conditions and objectives stipulated in the agreements between FMO and the relevant government or public funder. These programs are made up of publicly funded programs, sub-delegation agreements, and guarantee programs supported by the European Commission. The details of the programs along with their accounting treatment are described in detail in FMO’s consolidated annual financial statements as at December 31, 2025. The documentation below provides the summary update as of June 30, 2026.

Public funding programs

Programs supported by the Dutch Government consist of subsidies provided under the General Administrative Law Act regarding MASSIF, Access to Energy Fund (AEF), Building Prospects (BP), Mobilizing Finance for Forests (MFF), 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. These programs represent economic silos whereby the assets and liabilities of the programs are ring-fenced for the benefit of the funding party.

The table below provides a summary of the nature of FMO’s relationship with the related key structured entities 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, indicating whether their financial information is consolidated in FMO’s financial statements and whether FMO receives remuneration for the services provided. The table also provides information on the contributions made by the originators to date.

FMO earned management fees of €12.1 million (30 June 2025: €11.8 million) for its role in administering the programs. The fees are recorded in the line item "Remuneration for services rendered".

Sub-delegation Arrangements

The sub-delegation agreements represent arrangements whereby FMO facilitates the transfer of a funding party’s participation in underlying programs managed by the sub-delegee. The program assets are not recorded on the FMO statement of financial position as the programs represent economic silos whereby the risks and rewards associated with the program assets are with the funding party. In accordance with the IFRS 9 derecognition criteria, the investment made by FMO in the program is considered a pass-through arrangement and therefore not recognized on the FMO statement of financial position. Any funding received by FMO that is in the process of being transferred to the sub-delegee is recognized as an asset by FMO in the line item "Cash balances with Banks", along with a corresponding liability in the "Accrued and other liabilities" line item, up to the point the funding is transferred to the sub-delegee. On June 30, 2026, the cash balance related to sub-delegation agreements amounts to € 76 million (Dec 2025: € 69 million). These arrangements cover the Agri-Fi and Electri-Fi facilities, as well as the Climate Investor One and Climate Investor Two facilities. Refer to the December 31, 2025 consolidated annual financial statements for more details.

European Commission Guarantee Programs

The EC and FMO have an agreement for the risk sharing facility NASIRA for an amount of €100 million. FMO issues guarantees to financial institutions allowing them 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 guarantees are accounted for as issued financial guarantee contracts in accordance with IFRS 9. No financial assets are recognized in accounting for these transactions. FMO receives guarantee fees from the guarantee holders. These fees are presented in the Fee and Commission Income line item. Refer to the "Guarantees" section in the "Accounting Policy" chapter for further information. In 2025, the NASIRA+ facility was agreed with the EC but no guarantee agreements have been entered into during the current reporting period under this facility.

The EC has provided €40 million in guarantees to the FMO Ventures Program, in addition to the technical assistance funding mentioned in the preceding section on "Public Funding Programs". FMO administers the program and initiates the program's investments. FMO and the other participants share in the risks and rewards of the investments via a predefined waterfall structure. The investments are recognized as financial assets by FMO and are measured at fair value in the FMO statement of financial position. In addition, any relevant liabilities, including amounts attributable to co-participants, are recognized in the FMO statement of financial position. Refer to the "Fair value of financial assets and liabilities" section for further information.