news - Monthly Transaction Overview – February 2024

NEWS

Monthly Transaction Overview – February 2024

March 11, 2024

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. 

Financial Institutions

Financiera FAMA
Microfinance institution in Nicaragua

FMO re-invested inFinanciera FAMA, the second largest microfinance institution (MFI) in Nicaragua, with a USD 7mln loan facility from Dutch government fund MASSIF. FAMA has been a client of FMO since 2007 when they transitioned from NGO to regulated MFI. FAMA will use this new facility to continue funding clients in underserved areas of Nicaragua, earning the investment a 100% Reducing Inequalities-label.

Private Equity

ALIVE Early Growth Fund II
Mult-sector fund based in Colombia

With a USD 10mln investment from Dutch government fund Building Prospects, FMO is supporting the ALIVE Early Growth Fund II. The Fund will pursue growth capital opportunities in 10-15 impact-driven early-stage companies/SMEs with scalability potential that are addressing challenges of low-income communities in Latin America (mainly Colombia and Peru). The Fund Manager has an innovative approach towards impact with a specific impact plan for each investment. The Fund received a 100% Reducing Inequalities-Label due to its focus on inclusive businesses. Its impact thesis is further supported by 2X (gender equality) and the fact that they have been working already for quite some years with Value for Women

Agribusiness, Food & Water

ALIVE Early Growth Fund II
Mult-sector fund based in Colombia

FMO signed a USD 4 mln Smallholder Livelihoods Facility (SLF) with its new client Neumann Kafee Gruppe (NKG) together with Rabobank. NKG is the #2 coffee merchant in the world: they work with over 80,000 smallholder farmers and is active across 25 countries. The SLF is a revolving farmer finance facility at the centerof the company’s sustainability program, which provides farmers with loans to cover the purchase of inputs, assets, and coffee farms. Not unlike NASIRA, the SLF incorporates a risk-sharing mechanism which divides the risk between NKG and other lenders and partners.

Share this page