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.
Bank Respublika OJSC
Mid-sized commercial bank in Azerbaijan
FMO signed a USD 10 mln senior term loan with our long-standing client Bank Respublika, a medium-sized universal bank which focuses on micro, SME and retail customers in Azerbaijan. FMO’s funding will be made available in the local currency of AZN. Bank Respublika will use the new funding in line with FMO’s aim to reduce inequalities by means of on-lending the proceeds to eligible women, youth, agriculture and micro-entrepreneurs in the country.
Mid-sized commercial bank in Armenia
FMO’s new funding facility of USD 25 mln is in the form of a 5-year senior term loan, which is for USD 15 mln invested by FMO-A and USD 10 mln is mobilized via an insurance partner of FMO. AraratBank – FMO’s client since 2014 – is a mid-sized universal bank in Armenia focusing on micro, small and medium-sized enterprises and retail customers. The bank will use FMO’s funding fully in line with FMO’s goal of reducing inequalities to finance eligible women, youth, agriculture and micro entrepreneurs in Armenia.
Greenlight Planet Inc.
Off-grid solar company
FMO signed a USD 5 mln top-up of its existing senior loan, on top of the existing USD 10.75 mln commitment. The company is a diversified off-grid solar company with a presence across the full value chain, and is one of the leaders in this sector. FMO’s local currency facility will help the company to deploy more solar home systems across Sub-Saharan Africa on a pay-as-you-go basis, and as such provide electricity access to people in the Bottom of the Pyramid. Additionally, increased energy access contributes to the productivity of households and economic growth (lighting and charging allows work and study after sunset), and helps to power small businesses.
Dolma Impact Fund II
Private Equity Fund in Nepal
SMEs in Nepal have almost no access to growth capital. The private equity sector is in an infant stage and Dolma Fund Management is the first private equity fund manager in Nepal filling this gap. This successor fund is financed by FMO (through the MASSIF fund), Swedfund, IFC and CDC. Over the next years the fund is expected to finance a portfolio of businesses in healthcare, renewables and tech. In addition, Dolma II has signed an MOU for the 2X Challenge to increase opportunities for women in Nepal.
Archipelago Asia Focus Fund II
Private equity fund focused on Southeast Asia
FMO provided a USD 15 mln commitment to Archipelago Asia Focus Fund II, a private equity fund investing across Southeast Asia and specifically in Indonesia, Philippines, Malaysia, and Thailand. The fund focusses on three sectors: consumer goods & services, financial services, and industrials & logistics. The investment strategy aims to improve businesses’ growth and performance through active ownership of portfolio companies thereby contributing to the economic growth and creating new jobs.
SUSI Asia Energy Transition Fund
Private Equity Fund focused on renewable energy
FMO committed USD 20 mln to SUSI Asia Energy Transition Fund (SAETF) as part of the fund’s USD 80 mln first closing. Managed by SUSI Partners, SAETF is a private equity fund focused on equity and quasi-equity investments in renewable energy and energy efficiency in Southeast Asia. Given the region’s rapidly growing demand for electricity, Southeast Asia requires substantial investment into both new renewable energy generation as well as energy efficient technologies in order to meet its climate and development goals. With this investment FMO is supporting one of the first movers in the energy transition space in the region using knowledge and experience gained in developed markets.
ACON Latin America Opportunities Fund V.
Co-investment in Vitalis Group
In cooperation with private equity manager ACON Investments, as well as Proparco and DEG, FMO invested USD 20 mln in Vitalis Group, a leading manufacturer and distributor of generic injectable pharmaceuticals with production facilities in Colombia and Mexico, and sales to more than 20 countries, focusing on Latin America. The Group’s more than 700 products are mainly used in surgical theaters, emergency rooms, and intensive care units, including for treatment of COVID-19 patients. With over 150 molecules in its portfolio, it covers multiple therapeutic areas such as antibiotics, anesthetics, analgesics, and gastrointestinal. The funds are used to acquire the companies that comprise Vitalis Group, ensure the continuation of business under a newly recruited CEO, and further institutionalize the company in preparation for future growth.
Five Bridges Project
Ministry of Economy and Finance of Guinea
FMO signed a EUR 36 mln Buyer’s Credit Facility agreement with the Ministry of Economy and Finance of Guinea. The Facility will be used to finance 50% of a design-build construction contract between a Dutch contractor and the Ministry of Public Works of the country. The contract relates to the construction of 5 bridges with access roads in and around Guinea’s capital Conakry. With this transaction, FMO aims to contribute to the development of the private sector and to improve living conditions in Conakry by unlocking and improving access to jobs, markets, hospitals and other basic social services.