news - Monthly transaction overview – July

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 close to 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 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 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.

Agribusiness, Food, and Water

Sucafina
Multinational coffee merchant
Sucafina is active across the coffee value chain, ranging from farming to roasting. This month, FMO supported Sucafina with a second loan. The USD 17 mln facility will go towards washing stations, coffee mills and warehouses in – among others - Uganda, Rwanda, Burundi, Tanzania, and Kenya. Sucafina will be able to further expand its origination activities and provide direct support to smallholder farmers.  Would you like to take a peek at one of Sucafina’s washing stations? Watch this video of Sucafina’s farmers.

Latin American Agribusiness Development Corporation S.A. (LAAD)
Non-deposit taking financial institution for agribusinesses in Latin America
FMO and FinDev Canada provided a syndicated loan facility of USD 72 mln to LAAD, a corporation focused on providing financial services to agribusinesses in Latin America. The facility was led by FMO and will help expand agricultural financing to small and medium-sized enterprises (SMEs) in over 15 countries across most of rural Latin America and the Caribbean. As a non-deposit taking financial institution, LAAD relies on development finance institutions (DFIs) for part of its long-term funding.

Trans-Oil Group
Farming, oilseed crushing, trading, and transportation logistic provider in Moldova
FMO signed a USD 15 mln participation in a seasonal Pre-Export facility (PXF) in favor of Trans-Oil Group. Led by ING, the PXF totals USD 180 mln with participants such as Black Sea Development Bank, EBRD and Unicredit. FMO’s participation in the PXF supports farming in Moldova which employs c.a. 30% of the country’s population and on the background of the COVID-19 pandemic, signals to the market FMO’s confidence in Moldova and in Trans-Oil.

Financial Institutions

ACEP Burkina Faso
Microfinance Institution in Burkina Faso
FMO is proud to announce the closing of its first loan to the microfinance sector of Burkina Faso. We signed a EUR 3 mln loan facility to Alliance de Credit et d'Epargne pour la Production Burkina Faso (ACEP BF). The transaction supports on-lending to micro, small and medium-sized enterprises in this Least Developed Country. The funding is provided by MASSIF, a financial inclusion fund that FMO manages on behalf of the Dutch Ministry of Foreign Affairs. As a young microfinance institution, ACEP BF offers micro (80%) and SME (20%) loans, supporting local employment and providing much-needed financing to these underserved customers.

Access Bank
Financial Institution in Nigeria
Together with Proparco and Symbiotics, FMO arranged a syndicated loan of USD 93.8 mln Tier-II capital for its long-standing client Access Bank, to strengthen its capital position under the current uncertain times due to the pandemic. Part of the bank’s 5-year strategy is to deepen its footprint in the retail segment as well as to increasingly support local micro, small, and medium-sized enterprises, thereby supporting job creation in the Nigerian economy. The syndication was led by FMO, which provided USD 55 mln of the total funding.

Banco Comercial e de Investimentos
Financial Institution in Mozambique
FMO signed a USD 50 mln Friendship Facility transaction with Banco Comercial e de Investimentos in Mozambique. The transaction was arranged by the French DFI Proparco and will support the bank’s activities towards corporate and infrastructure projects, which are core to the country’s economic development and recovery following the devastating 2019 cyclone and COVID-19 impacts. Proparco and FMO each contribute USD 25 mln.

Maha Agriculture
Microfinance institution in Myanmar
FMO provided a USD 6 mln loan in local currency through MASSIF to its existing client Maha Agriculture Public Company Limited. Maha is a deposit-taking microfinance institution (MFI) operating in rural areas throughout Myanmar. It serves more than 40,000 clients, 93% of whom are farmers. The Myanmar government has taken measures to control and limit the risk of spreading the corona virus and ordered a lockdown over April, resulting in the complete closure of all economic activities, followed by physical restrictions hampering operations until 15 May. Consequently, liquidity in the market had dried up resulting in further deterioration of the economic disruption. This affects the food security and the lives of the poor people in Myanmar. Through this new loan FMO continues to support Maha to provide financial services to the farmers in rural areas.

Proximity Finance
Microfinance institution in Myanmar
Through MASSIF, FMO provided a USD 5 mln loan in local currency to Proximity, a microfinance company that is active mainly in the Irrawaddy delta areas in Myanmar. Proximity provides microfinance loans solely to farmers, with crop loans representing the vast majority of the loan book. As a result of COVID-19 the Microfinance Supervisory Committee in Myanmar ordered a lockdown in April resulting in the complete closure of all economic activities in the country, followed by physical restrictions hampering operations until 15 May 2020. The resulting liquidity issues limited Proximity’s capacity to provide support to the livelihood of their borrowers and food security in Myanmar. With the new loan, FMO contributes to the ability of  Proximity to continue supporting their farmer clients.

Private Equity

Mawingu
Wireless Internet Service Provider in Kenya
FMO Ventures Program has committed USD 1.5 mln to Mawingu Networks through a pre-Series B Convertible Note. This regards a co-investment with Energy Access Ventures who also committed USD 1.5 mln and is an existing shareholder. Mawingu focuses on last-mile connectivity in rural and peri-urban Kenya with initial expansion into Ethiopia. Mawingu uses its own infrastructure to connect to fiber optic cable grid of the large national Internet Service Providers and Mobile Network Operators. The company is therewith able to offer low-cost, reliable, data-unlimited, business, home, and public (through hotspots) internet services to last-mile

North Haven India Infrastructure Fund
Light infrastructure private equity fund in India
FMO committed USD 20 mln to North Haven India Infrastructure Fund (NHIIF), participating in the Fund’s final closing. The Fund is managed by Morgan Stanley Investment Management Private Limited. NHIIF mainly focuses on asset-light infrastructure investments and takes both significant minority and control stakes in infrastructure platforms and infrastructure services companies that offer high growth potential and operate in three focus segments: (i) energy and utilities, (ii) transportation and logistics, and (iii) social infrastructure (e.g. healthcare, education). By investing in the Fund, FMO supports companies that are building the physical and societal infrastructure that will enable large groups of the Indian population to benefit from economic efficiencies as well as improved services and social welfare.

Mandarin Overseas Robotics Enterprise
One of the largest automotive parts manufacturers in Indonesia
FMO co-invested USD 2.3 mln in Mandarin Overseas Robotics together with Capsquare Asia Fund II. This is a top-up to the original investment made in 2019. Mandarin Overseas Robotics is one of the largest privately-owned Tier-1 steel automotive parts manufacturers (e.g. car bumpers, disk brake covers, etc.) in Indonesia with a diversified and long-standing blue-chip customer base. The company’s production facilities consists of two integrated sites located in Java, close to the main customers. This investment aims to support the company in COVID-19 times, and ensuring a smooth transition through the crisis.

Energy

Georgian Global Utilities JSC
Water utility and renewable energy company in Georgia
FMO subscribed for USD 65 mln in the USD 250 mln bond issue by Georgian Global Utilities. This is the first-ever Green Bond issue in Georgia. With our subscription, we support this long-standing FMO client in accessing international capital markets. Our role as anchor investor was important to attract other commercial investors to participate in the issuance as well. The proceeds will be used to refinance all existing debt of GGU’s subsidiaries and will also allow GGU to invest an extra USD 30 mln in further rehabilitating their water assets. GGU through its subsidiaries operates 220 MW of hydropower plants and owns the only wind power plant in the country (21 MW). In addition, GGU fully owns the sole provider of water and wastewater treatment services in the greater Tbilisi area. 

NL Business

Solvoz Holding B.V.
Dutch platform for responsible procurement in the aid sector
FMO signed a Development Accelerator Facility agreement with Solvoz Holding B.V. Solvoz is a Dutch social enterprise that has is developing a collaboration platform for procurement and tendering in the aid sector. This platform integrates a solutions database with a tendering platform and as such allows agencies, medical facilities as well as suppliers to improve procurement processes. NL Business will make up to EUR 225,000 available to complete development in order to launch the platform this fall, specifically aimed at COVID-19 responses

Stichting PharmAccess International
International NGO headquartered in Amsterdam
FMO signed a Development Accelerator Facility agreement with Stichting PharmAccess International. PharmAccess is an international NGO that aims to improve access to better quality care. We provide part of the funding to implement and roll out the COVID-19 Monitor in Ghana. The COVID-19 Monitor is a digital ecosystem service that integrates the use of a mobile application and a remote care center operated by medical professionals which provides risk-based remote information to prevent people with COVID-19 symptoms to visit clinics. With our funding, the remote care center will be established and the application will be made available for a standard USSD feature phone. Based on the experience gained in Ghana, it will be introduced to other African countries and post-COVID-19, it can also be used for non-communicable diseases such as hypertension and diabetes.