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.
Our longstanding customer AccessBank Azerbaijan (ABA) is a mid-sized bank focusing on MSME and retails customer segments. ABA received a senior unsecured loan of USD 25 million, 3-year tenor, available in USD and synthetic local currency AZN. The funding will be used by ABA to finance eligible Micro, Youth, Women and Agri customers meeting FMO’s Reducing Inequalities (RI) label for 100%.
We’ve closed a high-impact transaction with our longstanding client JSC Bank of Georgia, a universal, systemic bank with high ESG standards and a fast-growing (underserved) SME portfolio. FMO’s ability to provide a true local currency loan – based on our ability to issue GEL bonds on the local market - contributed to a highly additional loan of GEL 275 mln (~USD 100 mln). The use of proceeds is 80% towards micro and underserved SMEs (women, youth, agri, rural) and 20% towards Green projects.
ACE serves a growing niche market in the development and supply of dairy based formulated food ingredients for nutraceuticals and fast-moving consumer goods in India. We invested USD 18.5 mln in equity within a broader consortium. The capital raised will primarily be growth-focused and used for the expansion of the company's existing processing facilities, development of a new facility, and upward integration of its milk procurement system. ACE is a front-runner in a burgeoning and dynamic sector, with a strong social impact. Last year, the Company sourced 25% of its milk from the women-led Milk Farmer Producer Organization, which pays premia for quality milk, provides training and veterinary services, and is piloting value-added products to its members such as biodigesters.
