News

FMO and Rabobank launch India Agri Business Fund

Last week, FMO and Rabobank launched the India Agri Business Fund, a Private Equity Fund for assisting the expansion of the Indian food and agribusiness sector. FMO and Rabobank will invest US$ 20 mln and US$ 25 mln respectively. Other lead investors of the Fund are IFC and DEG with a share of US$ 20 mln each enabling a First Closing of US$ 85 mln. Uniquely, the Sponsor and the Lead Investors are all “AAA” institutions.

The Fund has been established as limited liability Company in Mauritius. It has contracted Rabo Equity Management Company Limited based in Mauritius as the Investment Manager while Rabo Equity Advisors Private Limited will be the Investment Advisor. It is expected that a few large commercial investors will join in the next Closing within 12 months.

The Fund will target more than 38 sub sectors of Food & Agribusiness and will additionally aim to invest in agri infrastructure, i.e. cold chain logistics, warehousing, dedicated ports, auction markets, etc. It will follow the best practices including on social and environmental issues.

FMO is active in India in a number of sectors and sees this Fund as the most proper way to improve access to finance in the fast emerging agribusiness sector. Mr Arthur Arnold, CEO of FMO in his message said: “We are very pleased with this opportunity to strengthen ties with Rabobank as a commercial bank that has a strong and straightforward approach to cooperative finance and extensive knowledge of the agribusiness sector. We hope this cooperation with Rabobank, one of the shareholders of FMO, will lead to more ways to increase access to finance in the future.

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. FMO's investment portfolio is EUR 3.4 billion, FMO is one of the largest bilateral 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.

Press contact:
Nicoline van Slingelandt
Communications Officer (PR)
T: +31 70 314 9790  
E: n.van.slingelandt@fmo.nl
W: www.fmo.nl