news - Monthly transaction overview – March

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 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.

Financial Institutions

Sembrar Sartawi
Bolivian microfinance institution
Sartawi is a FMO customer since 2013. A new USD 6mln facility is funded by the Dutch Fund for Climate and Development (DFCD). Sartawi provides microfinance loans in combination with technical assistance to farmers in rural Bolivia. The new facility contributes to climate-resilient economic growth by supporting vulnerable smallholder famers to improve their livelihoods, for example through purchasing environmentally certified seeds, investing in energy efficient equipment, or taking out a climate risk insurance product.

Private Equity

Paymob
Digital payments provider in Egypt
FMO supports Paymob with a USD 3 mln contribution to the second tranche of its Series A fundraising activity. Paymob is an excellent fit with FMO’s Ventures Program based on its exceptional team, innovative payment solutions and – proven – capability to include thousands of underserved Egyptian merchants into financial services offered by the company and its partners. The FMO Ventures Program is an investment program funded by FMO, the Ministry of Foreign Affairs and the European Commission targeting early-stage technology-enabled innovative business models in emerging markets.

Imon International 
Tajikistan’s leading micro lending institution
Following the exit of Imon’s main shareholder Imon Foundation, Mikro Kapital Group, the European Bank for Reconstruction and Development (EBRD) and FMO invested USD 5.9 million to acquire a stake of 43.5 per cent. The international shareholders of Imon are committed to supporting the company’s activities, which are vital for grassroots businesses and farmers in rural mountainous areas of Tajikistan. The transaction also means Imon will be a sustainable and profitable institution compliant with the regulatory requirements as well as international standards of corporate governance and integrity.

Agri, Food & Water

COMASA
Nicaragua’s industry leader in peanut sourcing, processing, and exporting
FMO participates for up to USD 15mln in a USD 65mln IFC-led syndicated working capital facility. The funds will be used to support COMASA’s purchase of peanuts from Nicaraguan farmers, and the processing of these peanuts for regional and global export. The proposed transaction will support the continued viability of the peanut sector of the country, one of the top 5 agribusiness exports of Nicaragua. This sector represents an estimated 5% of exports from Nicaragua and generates an estimated 8,000 direct jobs.

Mekong Timber Plantations
Forestry plantation company in Laos
FMO supplied a USD 12mln senior debt facility to Mekong Timber Plantations (MTP), the largest forestry plantation company in Laos. This loan will help finance MTP’s expansion of plantation area, together with the construction of an integrated mill, enhancing the use of timber and adding significant value to products domestically. The loan also supports enhanced climate mitigation via sustainable plantation expansion and the creation of durable wood products, which provide long-term carbon storage. 

See the full press release

Stichting Andgreen.Fund (&Green)
Debt Fund in agricultural production value chains
FMO is providing USD 25 million of long-term funding to the &Green Fund to help it scale up its portfolio over the coming years. To date, &Green has invested in its core focus supply chains, including palm oil, soy, cattle and rubber, challenging commodity supply chains that are associated with deforestation in tropical forest countries. The Fund’s mission is to deliver inclusive, sustainable, and deforestation free commodities-/forest products. As part of its mission, these projects need to be embedded in a Landscape Protection Plan. The Fund’s goal is to prove that financing inclusive, sustainable and deforestation-free commodity production can be commercially viable and replicable.

NL Business

Royal Philips
Philips and FMO combine forces to accelerate universal health coverage in Africa
Philips and FMO (NL Business) signed a wider partnership agreement aimed at improving access to quality primary care in Africa. The partnership is built on the shared belief that private sector innovations and partnerships result in better and affordable care underpinned by investable business models for underserved communities. Under the agreement, Philips and FMO will work together on primary healthcare projects in low- to medium-income countries in Sub-Saharan Africa to develop projects from ideation to proof of concept – testing innovations in real life settings to validate clinical and financial assumptions and making improvements so that investment decisions on scaling can be made more confidently. The initial scope of the project is to provide development financing for around ten projects over the next five years.

See the full press release