news - Monthly transaction overview - August


Monthly transaction overview - August

September 6, 2021

Monthly transaction overview – August 

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

Global Partnerships
Fund manager

FMO signed a new 5-year USD 5mln senior loan with existing client Social Investment Fund 6.0 (SIF 6), a fund managed by long-standing MASSIF partner Global Partnerships (GP). GP is an experienced fund manager with a proven track record in managing social impact debt funds. It is characterized by its impact-first strategy with a strong social mission, financing MFIs and other social enterprises that provide basic products and services for the Bottom of the Pyramid, with a particular focus on women and rural poor. FMO has been partnering with GP since 2010, via various MASSIF loans and CD grants.

Financiera Desyfin
Non-Banking Financial Institution in Costa Rica

Financiera Desyfin focusses on the lower end of the SME segment. It core business is providing credit, factoring and leasing products. FMO will provide the institution with its first green line which is expected to be utilised mainly for energy efficiency, recycling and clean transportation activities. In addition, we are providing TIER II to strengthen the capitalisation on the institution. Together this forms a USD 22.5mln facility.  

Financiera FDL
Micro-finance institution in Nicaragua

Financiera FDL is a rural-focused MFI in Nicaragua and a long-standing client of MASSIF since 2014. The facility has a committed tranche of USD 3mln and uncommitted tranche of USD 1.5mln. Half of the proceeds will be dedicated to finance micro-entrepreneurs and the other half will be on-lent to agricultural MSMEs active mostly in coffee and cattle, as well as other crops. FDL is the largest regulated MFI operating in Nicaragua (USD 70mln in total assets) and has a strong mission to support the base of the pyramid in rural areas.

QNB Finansleasing
EUR 100 mln Syndicated SME/Green Facility

FMO has provided a EUR 100 mln Syndicated facility to existing client QNB Finansleasing in Turkey. QNB Finansleasing is one of the top 5 leasing companies in Turkey and existing client of FMO since 2016. Syndicate partners are BlueOrchard Microfinance Fund (BOMF), OeB, Incofin, Atlantic Forfaiting and EFSE. The facility is the largest transaction closed in the leasing industry in 2021.The syndicated facility includes a tranche of 3 year and one of 5 year. The use of proceeds will be 70% SMEs and 30% renewable energy/energy efficiency and hence contributes to FMO’s green target.

I&M Bank Ltd
Tier 1 bank in Kenya

IFC and FMO, the Dutch entrepreneurial development bank, signed a subordinated tier 2 loan to I&M Bank Ltd. of USD 50 million. With IFC contributing USD30 million and FMO contributing USD20 million, the loan will strengthen I&M Bank Ltd.’s regulatory capital position, allowing the bank to boost economic activity in Kenya by lending to small and medium-sized enterprises mainly in the trade, manufacturing and construction sectors. The financing facility from IFC and FMO will support I&M Bank Ltd.’s strategic initiatives, including in business banking solutions ranging from trade and debt finance to business transaction services. COVID-19 has hit Kenya’s economy hard, disrupting economic activity, forcing many businesses to close, and heightening the need for capital for others to continue operations. Small businesses in Kenya employ more than 80 percent of the working population


Energy Access Relief Fund
Fund focused on Energy access companies in Sub-Saharan Africa and Asia

The Energy Access Relief Fund is an unprecedented partnership of 16 governments, foundations and investors and aims to provide essential financial support to energy access companies in sub-Saharan Africa and Asia. FMO joined this initiative with USD 5mln through the Access to Energy fund, a fund managed on behalf of the Dutch government. The EARF, managed by Social Investment Managers and Advisors (SIMA), will provide relief capital in the form of short-term loans to an estimated 90 energy access companies in sub-Saharan Africa and Asia still struggling with disruptions wrought by COVID-19.

CJSC Electric Networks of Armenia (ENA)
Electricity distribution company in Armenia

FMO signed a USD10mln B-Loan Participation with EBRD with the CJSC Electric Networks of Armenia (ENA), the sole electricity distribution company in Armenia. This is FMO’s second B-loan with ENA, following the USD10mln one signed in 2017. ENA will use this facility for the upgrading of their distribution network, including the installing of more smart meters.

Quadran Burkina Faso SA
24MWp solar farm in Burkina Faso

FMO is investing into Quadran Burkina Faso S.A (“Zano”), an SPV established under the laws of Burkina Faso with a total syndicated debt of EUR 20.25 million. The Sponsor is Qair S.A.S formerly known as Quadran International, the development arm of the French Renewable Energy company Lucia Holdings. This financing will allow for the development, construction, operation and maintenance of a 24MWp solar farm near Tenkodogo in Burkina Faso. Zano will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa at a lower price than current thermal power stations.

Private Equity

Off-grid solar company

FMO closed a USD 2.1mln follow-on investment in d.light, funded with the Access to Energy Fund and Building Prospects, both managed on behalf of the Dutch government. FMO initially invested USD 10.6 million in December 2018 as a co-investment with a Consortium led by Evolution II, alongside other co-investors Swedfund and Norfund. d.Light is one of the world’s leading off-grid solar players, with an estimated 26 percent market share in branded off-grid solar products. The Company has sold over 15 million solar products during the last 5 years (25 million in total) and has a proven track record in the pay as you go (“PAYGO”) strategy. The company has reached its target of impacting 100 million lives positively through providing power to the unconnected.




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