Fund for Dutch enterprises

With the Facility Emerging Markets (FOM - 'Faciliteit Opkomende Markten'), FMO stimulates Dutch enterprises to invest in emerging markets and developing countries. FOM is a joint initiative of the Dutch Ministry of Economic Affairs and FMO.

Supporting Dutch companies

FOM provides medium and long term loans to companies or joint ventures in emerging markets that are majority owned or controlled by Dutch enterprises.

In many cases, no appropriate commercial financing is available for these joint ventures and subsidiaries for the construction or expansion of a production plant or to buy new equipment. Also, tenors are often too short or excessive security is needed.

We offer these joint ventures and subsidiaries the opportunity to strengthen their financial structure, by providing often unsecured or subordinated loans. As a result companies are in a better position to attract working capital from local banks.

FOM financing

We provide access to long-term finance. But we also support companies in embedding social and environmental standards. Building sound governance is another area where we can add value for them.

 FOM specifications:   

• Financial package is tailored to the specific needs of the local enterprise.
• Financing amounts to a maximum of  €10 million.
• Maturity can range from three to 12 years.

Conditions:

• The Dutch company must provide certain guarantees to strengthen the financial structure of the local enterprise.
• FOM-financing is possible in all member countries of the World Bank, including the Netherlands Antilles and Aruba, with the exception of high income countries and EU-members.
• FOM will not finance Dutch companies that have entirely or largely transferred to emerging markets.

The costs of FOM-finance - interest and fees-  are in line with market conditions and based on the risk-profile of each individual case.