news - Monthly Transaction Overview - June


Monthly Transaction Overview - June

July 5, 2021

As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50-year proven track-record of empowering people to employ their skills and improve their quality of life.

These months, we focus on business continuity and recovery in the wake of the COVID-19 pandemic. It is precisely now, during these times of crisis, that it is important to continue to invest in developing economies that are already or expected to be hit hard by the pandemic. While local governments are working hard to minimize the impact on their people and economies, we are needed now more than ever. Hence, we continue to empower entrepreneurs in developing economies to build a better world and boost resilience to withstand the pandemic.

Financial Institutions

Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA)

Investment fund active in Sub-Saharan Africa

FMO has renewed its USD5 million investment and made an additional USD5 million commitment in REGMIFA. Managed by Symbiotics, REGMIFA is a debt fund that provides debt financing and technical assistance to eligible partner lending institutions (PLIs) that are serving MSMEs across Sub-Saharan Africa. FMO has been investing in REGMIFA since its launch in 2010 and this investment will be the third renewal with FMO’s funding supporting REGMIFA to grow its portfolio - supporting more PLIs and expanding into 4 new countries.

I&M Bank Kenya

Commercial bank with SME focus

FMO signed up for a USD 20mln participation in a USD 50 mln tier-2 capital qualifying subordinated loan facility arranged by IFC to our long-standing client I&M Bank, a tier 1 bank focusing on SME and corporate customers in Kenya. The facility is put in place to boost its capital and expand its lending to SMEs for the years to come.

I&M Bank Rwanda

Commercial bank with SME focus

FMO has topped up our 2020 senior term loan facility with an additional USD 20 mln. I&M bank Rwanda is the No 2 bank of the country focusing primarily on SME and corporate clients in Rwanda. It is part of the I&M Group from Kenya with whom FMO has a longstanding relationship. Our financing facility will support the bank’s lending to SME’s as well as eligible green projects.  

Ecobank Transnational Incorporated (“ETI”)

Togo-based Pan-African banking group

FMO’s key account ETI, based in 35 African markets,has successfully raised USD 350mln on the London Stock Exchange by issuing the first Basel III compliant TIER II Sustainability bond, outside of South-Africa. A real landmark transaction for Africa in which FMO acted as the sole anchor investor to the bond and committed USD 50mln. The bond is structured as a 10NC5, and the proceeds will be used to fund green and social projects in alignment with ETI’s Sustainable Finance Framework. FMO’s funds will be earmarked which will allow us to pursue green and RI labels based on our own internal standards.

Banco La Hipotecaria

Privately-owned bank in Panama

FMO signed a USD 60 mln Senior Loan Facility with Banco La Hipotecaria in Panama and its subsidiary La Hipotecaria in El Salvador. Banco La Hipotecaria provides residential mortgages in Panama and (via subsidiaries) in El Salvador and Colombia, targeting clients in middle- and low-income segments, giving access to homeownership to those generally excluded therefrom. This USD 60 mln facility will be directed to the financing of affordable housing mortgages, including USD 15mln earmarked for Youth borrowers.

Banco Solidario

Microfinance bank in Ecuador

FMO signed an impactful transaction through a USD 35 mln senior loan to Banco Solidario, which serves over 286,000 clients, the majority of which is female. A customer of FMO’s since August 2019, they have been supported through 2 capacity development trajcetories and a loan facility. The latest funding will be on-lent to female microentrepreneurs, thereby supporting gender equality (SDG 5) and reducing inequalities (SDG 10) as well as economic growth (SDG 8). The transaction also qualifies for the 2X Challenge both due to the use of funds as well as due to its in-house female leadership program and >50% female workforce.


Private Equity

Turkey Growth Fund IV

Private Equity Fund in Turkey

FMO provided a USD 25mln commitment to Turkey Growth Fund IV. This is a private equity fund investing sector agnostically in Turkey with a focus on digital growth, export of low-cost skilled labour, and the rising middle class. The investment strategy aims to improve businesses’ growth and performance through active ownership thereby contributing to the economic growth and the creation of jobs.


FinTech startup in Nigeria

FMO participated in the Series B investment, providing funding to digital bank TeamApt, which has scaled its banking product Moniepoint in the past 2 years. TeamApt reaches approximately 29 million once-underserved individual with limited access to financial services, having processed USD 17.5 bln in transaction in the last year. Our funding will aid TeamApt in expanding its financial services to more consumers and businesses across Nigeria, with potential plans to expand into other African countries.

Acumen Fund Inc.

Impact investment firm with dedicated agriculture fund

FMO participated as a lead inestor in Acumen’s 3rd fund, Acumen Resilient Agriculture Fund (ARAF). With offices across the world, Acumen invests in SMEs across healthcare, renewable energy, agriculture, etc. This latest fund provides equity and mezzanine products, as well as technical support to early-stage agribusinesses providing climate resilient solutions to smallholder farmers across East and West Africa—a first of its kind.


M-Kopa Kenya Limited

Off-grid solar company

FMO signed a USD3mln top-up of its existing senior loan, on top of the existing USD11mln commitment. The company provides solar home systems and appliances, cookstoves, smartphones and digital financial services on a ‘pay-as-you-go’ basis, enabling customers to access products that they would otherwise not be able to afford on a cash basis. The original facility was the first large receivables-based local currency debt facility for an off-grid solar company of its kind - the proposed facility increase comes on top of this.

NL Business

DSM International B.V.

Global, purpose-led, science-based company for the Kenyan market

FMO signed a EUR 415K repayable development contribution agreement with Dutch company DSM International B.V., a company active in Nutrition, Health and Sustainable Living. Through subsidiaries, DSM produces safe and healthy nutritious products locally for children and pregnant and lactating women to fight chronic malnutrition (vitamin deficiency) among young children. FMO’s funding will be made available to co-fund the preparation of an entry into the Kenyan market for the local production of safe and healthy fortified nutritious food for children, mothers and their families to combat malnutrition.  The funds are used for the development of a business case, technical studies into different plant lay-out and market studies to enter new market segments.


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