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. Each month we give an overview of the transactions we have signed.
Ak Finansal Kiralama Anonim Sirketi
Leasing company in Turkey
AK Lease is a wholly owned subsidiary of AK Bank, Turkey’s third-largest private bank and is a prominent force in the country’s leasing industry. It has built a reputation for driving sustainability-focused growth and delivering customized financing solutions for projects in renewable energy, energy efficiency, and resource optimization. It is especially recognized for its pioneering product, ECO Lease—the first sustainability-themed leasing solution introduced in Turkey. FMO provided a EUR 40 mln facility, with the long-term financing aimed at supporting AK Lease’s strategy towards renewable energy and energy efficiency. Through this facility, AKLease will be able to further develop its green portfolio, and also support job creation and retention its SME clients.
Ilute Solar Limited
Special Purpose Vehicle for solar power project in Zambia
As Mandated Lead Arranger, FMO partnered together with Serengeti Energy and Kwama Energy as well as with with four impact lenders, to develop the Ilute Solar Project, located near Sesheke in Western Zambia. This 32MWp project is the first project financed power venture to supply electricity via the Southern African Power Pool (SAPP), under a market-based power purchase agreement (PPA) with GreenCo Power Services Ltd. FMO arranged USD 26.5 mln in financing, with the subordinated tranche provided by FMO and ElectriFI. This offers a more flexible repayment schedule, thereby sufficiently derisking the investment to attract Triodos as a commercial lender. This innovative finance model weaves together commercial, development, and concessional capital to mitigate investment risks and unlock bankability.
GIP Assets Pte. Ltd.
Blended finance fund unlocking green infrastructure investment
The Green Investments Partnership is one of the blended finance programs under Financing Asia’s Transition Partnership (“FAST-P”). It was launched by the Monetary Authority of Singapore to address climate finance gaps in developing Asia and is managed by Pentagreen Capital (a joint venture of Temasek and HSBC GIP). GIP is a blended finance fund designed to unlock investment for green infrastructure in places that need it most: it aims to close climate finance gaps in emerging Asia by supporting marginally bankable green infrastructure projects in sectors like renewable energy, e-mobility, water, and data centers, targeting Southeast Asia and South Asia. managed by Pentagreen Capital. FMO provided a USD 99 mln commitment, which marks one of the largest debt fund investments in our history, and is our first investment under the E-RET guarantee program, created by members of the European DFIs - EDFI Association and EDFI Management Company under the European Fund for Sustainable Development Plus.
Nafoods Group Joint Stock Company
Tropical fruit processor & exporter in Vietnam
FMO signed a USD 20 million senior secured facility with Nafoods Group Joint Stock Company, Vietnam’s leading processor and exporter of tropical fruit products. The financing package comprises USD 15 million for capital expenditure (expanding freezing and cold storage capacity ) and USD 5 million for working capital. This transaction is structured as a blended finance facility, equally funded by FMO-A and Building Prospects. Nafoods is a high-impact client with a vertically integrated supply chain and a strong commitment to inclusive business practices. The company sources from over 1,200 smallholder farmers, providing seedlings, technical support, and guaranteed offtake agreements. The investment will also phase out R22 and R404 coolant gases with ammonia-based systems which are more environmentally friendly and energy efficient, earning the transaction a 75% Green label and 100% RI label.
