FOM
Via FOM, FMO may extend medium and long-terms loans to a local subsidiary or a joint venture in which capital has been invested by a Dutch company. Depending on the specific need for investment, FOM can take the form of a loan, a guarantee, a subordinated loan, equity or a combination.
The need for finance via this facility has to be demonstrated. The Dutch company must invest in the subsidiary or joint venture. Certain guarantees will also be asked of the Dutch company. To ensure the investment's sustainability, companies are reviewed in terms of financial performance as well as corporate governance, environmental and social policies and benefits to the local economy.
In evaluating proposals, FMO considers the business plan of the emerging market venture and the Dutch parent company, as well as the strategic importance for the latter. FOM-financing is additionally meant to add to the continuity and strength of the Dutch parent company. FOM will not finance Dutch companies that wholly or largely shift to emerging markets. Other conditions are dependent on the specific company.
FOM-financing is possible in all those member countries of the World Bank, including the Netherlands Antilles and Aruba, with the exception of high income countries and EU-members.
Medium to long-term FOM-finance is provided to local subsidiaries of Dutch companies or joint ventures with a Dutch partner, having a controlling interest.
The finance amounts to max. €10 million. The maturity can range from three to 12 years. A grace period is negotiable. Depending on the specific financing requirement, the FOM funding may be structured as a secured/unsecured loan, a guarantee, a subordinated loan or as equity.
The costs of FOM-finance (interest and fees) are in line with market-conditions and based on the risk-profile of each individual case.
More information
You can find more information about FOM through the FOM-brochure and information sheet. For a quick check if FOM-financing is suitable for your investment, we kindly request you to review the 6 questions in the FOM quick scan. If you submit your answers to fom@fmo.nl, we will try to provide a first reaction within a few days. In case of questions you can contact us via tel.: +31 (0)70 314 95 52
- Quick scan
- Fact sheet English / Nederlands
- Brochure English / Nederlands
- Nederland onderneemt, FMO financiert
Stories of Dutch entrepreneurs working abroad and with FMO.
In 2006 the facility continued in a slightly adjusted form by FMO as FOM, a facility stimulating Dutch SMEs to invest in a number of emerging markets.The fund as it is now is a joint initiative of FMO and the Netherlands Ministry of Economic Affairs.