news - FMO invests in Russian agricultural machine producer Kolnag

FMO has invested in Kolnag, a Russian company that produces agricultural machinery such as soil preparation machinery, potato-growing and harvesting machines and feeding mixers for the Russian market. The investment is funded through FMO’s Dutch government-backed Facility Emerging Markets (FOM - 'Faciliteit Opkomende Markten').

Kolnag is a joint venture between the Russian management, three Dutch companies – EAIH B.V., Trioliet B.V, and Miedema B.V. – and one Belgian company, AVR BVBA. All the shareholders have much experience and a strong track record in the sector.

The investment will be used to fund Kolnag’s relocation to a new site in Kolomna, near Moscow in Russia. This will allow the company to expand its production. There is a growing demand for agricultural machinery in Russia as the country aims to become more self-sufficient and less reliant on import for its food supply.

“FMO’s investment will allow Kolnag to provide the market with machinery that helps farms achieve a more efficient production,” said  Mr. Sergey Tubolev of Kolnag. “This is necessary to achieve higher quality and quantity of the food supply in Russia.”

“This investment fits very well within FMO’s FOM-portfolio, as on the one hand knowledge will be transferred to a foreign company and on the other hand the export position of several Dutch companies will improve," said Paul Wolff, Senior Investment Officer at FMO. "FMO is pleased that its investment contributes to the development of agriculture and the improvement of rural lives in Russia, a country where FMO only operates through its FOM fund."

About FOM
With FOM, FMO stimulates Dutch enterprises to invest in emerging markets and developing countries. FOM is a joint initiative of the Dutch Ministry of Economic Affairs and FMO.FOM provides medium and long term loans to companies or joint ventures in emerging markets that are majority owned or controlled by Dutch enterprises. For more information, click here, or contact the FOM team at +31 (0)70 314 95 52 or FOM@FMO.nl.   

About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on four sectors that have high development impact: financial institutions, energy, housing, and agribusiness. With an investment portfolio of EUR 5 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl

Press contact:
Eveline Schijf, Communications Officer (PR)
T: +31 70 314 9924                                                
E: e.schijf@fmo.nl