news - Monthly Transaction Overview May 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. Our belief is that a strong private sector leads to economic and social development, and we have a proven track-record of 50+ years in empowering people to employ their skills and improve their quality of life. 

Our recent focus has been 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 investing 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.

Agribusiness, Food, and Water  

Comercial Internacional Exportadora S.A. (CISA)

Coffee exporter in Nicaragua

FMO signed a USD 25 mln senior loan to its existing customer CISA, the leader processor and exporter of coffee in Nicaragua for the 10 last years. CISA belongs to Mercon, one of the top 10 largest coffee merchants in the world with a significant market share in high quality sustainable coffee. This is an important achievement as coffee is the second most traded commodity in the world, with about half a trillion cups consumed per year. With this financing, FMO will support CISA expanding the processing capacity and upgrading the machinery of its mills as well as strengthening its funding profile, which comes at an opportune time due to market volatility and political turmoil in Nicaragua.

Sucafina

Multinational coffee merchant exporting coffee from East Africa

FMO signed a USD 15 mln facility in a USD 30 mln transactional working capital facility from Bic-Bred to support its long-term client Sucafina. Sucafina is a multinational coffee merchant active across the coffee value chain ranging from farming to roasting, accounting for for ~5% of total coffee traded across the globe and is the largest coffee exporter from East Africa. With this facility, Sucafina will be able to further expand its origination activities in Africa and Colombia and thereby provide direct support to smallholder farmers. This 100% Reducing Inequalities transaction will allow the company to utilize the proceeds of the facility to make prepayments to its operating companies in origin countries for the purchase, storage, and transportation of green coffee beans.