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Housing

FMO finances affordable housing initiatives geared at lower and middle incomes in developing countries. We see it as a means to stimulate development and lift people out of substandard, unacceptable living conditions.

Why invest in housing?

Sustainable housing initiatives can directly contribute to up to 20% of a country’s GDP. Such projects create opportunities in construction, building material production, small contracting services and employment. But they also indirectly stimulate sub-markets such as furniture and interiors.

Such investment is crucial in solving the affordable housing equation. Governments often have neither the means nor capacity to tackle the housing shortage by themselves - and the private sector is generally reluctant to provide financing to this underserved segment.

There clearly is a need for FMO as a development finance institution to design financial products that can attract private sector participation.

Social impact

Affordable, accessible housing initiatives also have a profound, social impact – empowering and emancipating the individual as well as the community:

  • A home can be a source for equity and wealth – eg, as collateral for starting a business.
  • It can provide a stable, safe base for families and single-parent/single-mother households.
  • Communal access to clean water, sanitation and electricity can resoundingly improve health and well–being – also leading to improved performance at school and work.
  • Household financing stimulates financial knowledge, education and better budget control.
  • Neighborhoods that combine the residential with commercial can lead to more efficient infrastructures and less CO2 emission.
  • Designing mixed-income neighborhoods can transform a neglected ghetto into a thriving community.

What we can do

FMO looks for local, private sector housing initiatives from both the supply side as well as the demand side, initiatives focusing on accessibility, affordability and sustainability.

We particularly look to partner with clients combining a proven track record with a long-term vision on quality, corporate governance, and environmental and social standards.

In turn, we can support your endeavor by offering our expertise, services and access to our network in areas such as:

  • Long-term capital for construction
  • Risk and mezzanine capital for infrastructure
  • Long-tenor, affordable mortgages in local currencies
  • Micro-financing for incremental housing
  • Mortgage portfolio securitization
  • Advising on environmental and social standards