Development banks FMO and BIO join forces in infrastructure sector
Earlier this week FMO (the Netherlands Development Finance Company) and BIO (Belgische Investeringsmaatschappij voor Ontwikkelingslanden) signed a Risk Sharing Agreement to start cooperating and jointly finance infrastructure transactions.
The Hague, 22 April 2010?xml:namespace>
Earlier this week FMO (the Netherlands Development Finance Company) and BIO (Belgische Investeringsmaatschappij voor Ontwikkelingslanden) signed a Risk Sharing Agreement to start cooperating and jointly finance infrastructure transactions. BIO, a relatively young development finance institution, wishes to expand its business into the financing of infrastructure transactions in developing countries. FMO has extensive experience in that sector, amongst others via its Infrastructure Development Fund, which was recently renewed with an additional EUR 70 million from the Dutch government. BIO has allocated an initial amount of EUR 45 mln to infrastructure transactions that will be financed through this cooperation, FMO allocates a similar amount.
By actively participating in transactions financed by FMO, BIO will be able to increase its experience and portfolio in this sector. “BIO has been mandated by the Belgian Government to finance the development of a competitive and dynamic private sector to contribute to sustainable economic growth in emerging countries. Recently the Belgian government has allocated new funds to BIO with the instruction to invest in larger infrastructure projects. Hence, this cooperation agreement will enable us to meet this requirement within very short terms, as BIO will benefit from FMO’s sound experience and substantial pipeline in this field,” said Hugo Bosmans, CEO of BIO at the signing.
FMO CIO Jurgen Rigterink stated at the signing: “FMO is delighted to see this partnership come to fruition.The cooperation matches our ambition to further enhance our infrastructure capabilities in low income countries as well as our aim to catalyze funds from third parties.” Among the first joint transactions FMO and BIO are considering to finance, are a geothermal power plant in Nicaragua and a methane to gas power plant in Rwanda.
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of € 4.6 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.
The Belgian Investment Company for Developing Countries is a Development Finance Institution established in 2001, within the Belgian Development Cooperation framework. The company’s mandate is to foster private sector growth in developing and emerging countries to achieve sustainable economic and social prosperity. BIO provides long-term financing (equity, quasi-equity, loans, and guarantees) to enterprises and the financial sector, either directly or through intermediary structures, as well as to private infrastructure projects. In addition, it offers grants for feasibility studies and technical assistance programmes. BIO operates as an additional partner to the local financial institutions and looks for projects with a demonstrated balance between financial return and development impact. BIO is a member of EDFI (European Development Finance Institutions). You will find more information on our website at www.bio-invest.be.
Press contact FMO:
Nicoline van Slingelandt
Communications Officer (PR)
T:+31 70 314 9790
M:+31 622 563 047
Press contact BIO:
Communications & Promotion Officer
T: +32 2 778 99 97
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