news - Monthly Transaction Overview — January 2022

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.  

In 2022, we are committed to supporting 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. 

Financial Institutions

Ipak Yuli Bank JSICB
Mid-sized commercial bank in Uzbekistan

FMO signed an USD 50 mln senior Term Loan with Ipak Yuli Bank, a medium sized universal bank focusing on Micro, SME and Retail customers in Uzbekistan, and FMO’s client since 2013. The 4 year funding line consists of a committed tranche of USD 15 mln and an uncommitted tranche of USD 35 mln. The loans will be made available in local currency UZS or USD. Ipak Yuli Bank 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 for 80% and to finance eligible green projects for 20%.

Energy

Borusan EnBW Enerji
Renewable energy company in Turkey

Under EBRD’s syndication program, FMO provided a USD40m B-Loan Participation, next to EBRD’s own USD40mln investment. The company is a prominent renewable energy sector company and a joint venture between the German utility Energie Baden-Württemberg (EnBW) and the Turkish conglomerate Borusan Holding. Their 720 megawatts of installed and fully operational capacities consist of one hydro-electrical power plant, two solar plants, and nine wind farms, as well as the largest wind portfolio in Turkey. The expected transition impact of this transaction will result from supporting the development of the green economy, safeguarding Turkey’s green agenda by backing a prominent renewable sector player, and enabling Borusan EnBW Enerji to maintain and develop its renewable energy pipeline growth in the coming years.

Private Equity

Private Equity 

Convergence Partners Digital Infras
Infrastructure, Manufacturing and Services

Convergence aims to make growth-capital investments in a diversified portfolio of mid-sized Sub-Saharan companies seeking growth, or brownfield / greenfield investments in the digital infrastructure space. FMO invested 30 million USD in the Convergence Partners Digital Infrastructure Fund with the aim of contributing to the economic growth and private equity market development across the African continent. This is also in line with our ambition of being a preferred partner for growth in emerging markets across Africa and to enhance digital inclusion across the continent.