news - Monthly transaction overview – June 2023


Monthly transaction overview – June 2023

July 5, 2023

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.

Agri, Food & Water

Climate-Smart Agriculture & Food Fund Systems Fund (CSA Fund)
Debt fund focused on Agri SMEs

The CSA Fund is a debt fund with a 10-year lifetime to be managed by ResponsAbility. The Fund’s strategy is to provide long-term financing along with technical assistance to 20 to 30 Agri SMEs operating in Asia Pacific, Latin America, and Africa. CSA Fund’s financing will target transactions focused on reducing climate change risk and GHG emissions as well as on promoting a sustainable increase in yields. FMO committed USD 3.3mln, increasing our total commitment in CSA Fund to USD 24.8mln. This will enable FMO to indirectly reach the agri SMEs and the underlying smallholders, the backbones of the agri sector and local workforce, that would otherwise be too small for direct FMO engagement.


Walo Storage
Battery Energy Storage project in Senegal

The Walo Storage project, a 10MW/20MWh battery storage system powered by a 16 MW solar plant, represents a major breakthrough as the first battery storage project in West Africa dedicated to frequency regulation. In a country challenged by grid constraints due to limited spinning reserves and the ongoing integration of intermittent energy, the Walo Storage project will bring much-needed stability to the local grid and reduce power outages. The project is developed and owned by Africa REN, an existing FMO client. FMO acted as Mandate Lead Arranger and will provide a 16-year loan of EUR 11mln from FMO-A and 19-year loan of EUR 8mln from government fund Access to Energy Fund.

Starsight Premier Energy Finance (SPEF)
Energy Service Company

Starsight Premier Energy Finance is the financing arm of Starsight Premier Energy Group. SPEG offers sustainable solar power and storage solutions to commercial and industrial clients in Kenya, and plans to expand to Uganda, Tanzania, and Rwanda in 2023 and 2024. We signed a USD 10mln facility funded from government fund Building Prospects to SPEF, supporting Solar PV and storage energy solutions for the commercial and industrial sector in East Africa. The loan is part of a USD 20mln joint facility with responsAbility.

Sun King Financing Limited
Provider of solar home systems

Sun King Financing Limited concerns a securitization vehicle for Greenlight Planet Kenya, a long-standing FMO client active in the Pay-as-you-go industry. The client sells solar home systems (and associated products) to households without access to (reliable) electricity, providing them with a significant improvement of quality of life. We signed a USD 20mln (equivalent in Kenyan Shilling) facility agreement with Sun King Financing Limited, funded by the goverenemnt funds Access to Energy Fund (USD 10mln) and Building Prospects (USD 10mln). The loan is a local currency facility, meaning the client can drawdown and repay FMO in Kenyan Shilling, avoiding exchange rate risk.

Financial Institutions

I&M Rwanda
Universal bank in Rwanda

FMO signed a USD 10mln Nasira guarantee facility with I&M Bank Rwanda, an existing FI client and the oldest bank in Rwanda. The bank is part of the I&M Group – a regional African group operating across East Africa. Although the bank is primarily a corporate bank, they are actively looking to expand their MSME portfolio with a primary focus on agriculture, women-owned businesses and young entrepreneurs – making Nasira the perfect fit for them. With MSMEs making up 97% of businesses in Rwanda and with most banks focused only on the corporate segment, the guarantee is highly impactful and the start of hopefully more Nasira guarantees in Rwanda.

Financiera Finexpar
Non-Bank Financial Institution in Paraguay

Financiera Finexpar in Paraguay is the largest Non-Bank Financial Institution in the country providing credit primarily to MSMEs across sectors. FMO disbursed USD 35mln including a USD 10mln local currency tranche. The proceeds of FMO’s loan will target SMEs operating in the agriculture and livestock sectors, as well as their value chains. Agri-SMEs are a key economic driver of the Paraguayan economy. By targeting this sector, the loan will contribute to economic growth and employment generation. 

JSICB Ipak Yuli Bank
MSME-focused bank in Uzbekistan

Ipak Yuli Bank, a client since 2013, is a mid-sized bank and one of the market leaders in MSME finance in Uzbekistan. The new loan agreement is for USD 50mln and will be used by Ipak Yuli in UZS and/or USD to finance eligible Green projects (20%) and eligible Micro business loans, and Youth and Female SMEs (80%). Regarding the green component, up to 20% of the amount can be used by Ipak Yuli to finance the greening of their own operations and office(s) which is part of their sustainability strategy.

Faten (Palestine for Credit and Development)
Largest microfinance institution in Palestine

Faten (Palestine for Credit and Development) is currently the largest microfinance institution in the West Bank and Gaza, commanding around 26,000 active borrowers. Despite operating in a challenging environment, Faten plays a critical role to enable access to finance for the unbanked population with its solid presence in the area. FMO signed a USD 10mln loan financed from MASSIF and DFC and USD 5mln NASIRA risk sharing facility with Faten. The transaction will stimulate the much-needed credit flow to unbanked groups and augurs well with FMO’s and MASSIF’s strategy to support investment in fragile and conflict affected states.

Banco International
Financial Institution in Ecuador

Banco Internacional (BI) is the 5th largest bank in Ecuador and FMO’s client since 2016. We signed a USD 50mln syndicated senior unsecured transaction with BI, which will be on-lent to green projects (67%) and SMEs (33%). This signing marks FMO’s 5th facility with BI, with FMO acting as lender, agent and arranger, mobilizing USD 34mln from trusted partners such as EFP, Munich RE, Blue Orchard, Triodos and Atlantic.

Private Equity

Commercial Cold Holdings Limited
Cold Storage Platform in South Africa

Commercial Cold Holdings Limited (CCH) is a newly established South-African food cold storage platform active within the Temperature Controlled Logistics (TCL) market. CCH currently has ~150k pallets in capacity across 9 facilities covering all South-African hubs, making it one of the largest players in the region. It provides an affordable and integrated offering across warehousing, picking and transportation which enhances value across the agribusiness value-chain in the country. This contributes to the improvement of the food yield in South Africa and accelerates the development of local cold storage infrastructure necessary to match the increasing food demand and changing consumer behaviour. FMO has signed a ZAR 277mln (~USD 15mln) equity participation.

Insitor Impact Asia Fund II (IIAF II)
Equity fund focused on Cambodia, India and Pakistan

IIAF II provides equity(-like) financing to early-stage and scalable SMEs in Cambodia, India and Pakistan. The Fund has social impact strongly embedded in its strategy, investing exclusively in companies that provide affordable goods and services to low-income consumers. FMO committed USD 10mln from MASSIF to the fund, managed by Insitor Partners, a new relationship to FMO. The Fund has a strong gender lens as well, being a 2X Flagship Fund.

E3 Low Carbon Economy Fund I
Venture Capital fund focused on energy access and climate tech solutions in Africa

The E3 Fund aims to invest in low- carbon decentralized and smart services in Africa. E3 is the reshaped successor fund of Energy Access Ventures Fund, with a renewed focus that goes beyond energy access and includes disruptive technologies and business models that provide services enabled by clean energy. E3 stands for Enabling Emerging Entrepreneurs as this is perceived as the core quality of the team that has built a track record of finding (often local) emerging entrepreneurs in (frontier) markets and providing hands-on support to bring these entrepreneurs to the next growth phase. FMO has committed USD 10mln.

Metier Capital Growth Fund III (MCGF3)
Private equity fund focused on mid-cap businesses across Sub-Saharan Africa

MCGF3 is a private equity fund raised by Metier Capital and focused on (quasi) equity investments in mid-cap businesses across Sub-Saharan Africa, including South Africa. FMO invested USD 30mln to MCGF3. Metier has a very experienced, stable, and dedicated management team that is committed to building sustainable businesses and making meaningful improvements in Resource Efficiency and ESG standards. By supporting Metier, we collaborate with a partner to empower local entrepreneurs and promote local prosperity on the African continent.