news - Monthly Transaction Overview - April

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 & Water

Trans-Oil Group

Vertically-integrated logistic provider in Moldova

We signed a USD 35 mln seasonal working pre-crop capital loan to our existing client  Trans-oil Group in Moldova, an oilseed crusher and trader. In this syndicated loan FMO acted as Mandated-Lead Arranger for a group of 5 commercial banks. The loan finances farming activities on more than 70,000 hectares with expected harvest of 250,000mt of grain to be exported to Low Income Countries.

Kılıç Deniz

Aquaculture company in Turkey

FMO has led a EUR 80 mln syndicated facility to Kılıç Deniz, a leading supplier worldwide of a variety of Mediterranean fish species, exporting seafood to ca. 60 countries, providing employment to more than 2,000 people. In 2019 FMO  signed a bilateral EUR 50 mln term facility with Kılıç Deniz to support its business expansion across Turkey and to optimize its balance sheet. (See full press release.)

Energy

GreenYellow S.A.S.

30MWp solar plant in Burkina Faso

FMO arranged and led financing for a EUR 21 mln facility for a 30MWp solar power plant near Ziniare in Burkina Faso. This is the second of a group of four projects that are the first privately-owned power projects in the country and financed by FMO. These four projects will increase the electricity generation capacity in Burkina Faso with around 90 MWac, increasing the country’s generation capacity 267MW to 350MW, an increase of 31%. The project is developed and will be owned by developer GreenYellow S.A.S and is located about 40 km north-east of Ouagadougou.

Financial Institutions

Bank al Etihad

Financial Institution in Jordan

We signed a NASIRA loan portfolio guarantee with Bank al Etihad equivalent to USD 30 mln. The guarantee program is co-funded with the European Union. Bank al Etihad serves the underbanked SME market in Jordan, focusing on underserved groups such as women-led businesses and start-ups. Offering custom-tailored financial services, Bank al Etihad will use our guarantee and Capacity Development project to strengthen its capacities and more effectively provide (non-) financial services and products to their target groups during post-pandemic recovery. (See full press release.)

Lendingkart Finance 

FinTech company in India

FMO provided a facility in INR equivalent to USD 15 mln, with 3 mln mobilised through our FIM fund Actiam to existing client LendingKart Finance. They are a non-banking financial institution financing small (family) businesses and approximately 90,000 clients in 29 states across India. The funds will help further financial inclusion throughout India through innovative FinTech solutions, while providing needed support for on-lending to MSMEs, focusing on women-run MSMEs and micro-enterprises, therefore significantly contributing to our goals of reducing inequalities and promoting gender equality.

Northern Arc Capital

Digital debt platform in India

A long-standing client of FMO since 2012, Northern Arc provides reliable debt capital access to non-financial corporates supporting low-income households and small businesses, mobilizing a cumulative USD 8 bln since 2008. FMO provided USD 25 mln in debt financing. As the 4th transaction in a series of large-scale investments, our latest transaction will be utilized for on-lending to financial institutions focused on women borrowers, micro-entrepreneurs, and SMEs. (See full press release.)

Nations Trust Bank

Financial institution in Sri Lanka

FMO provided a USD 40 mln loan to its long-term client Nations Trusts Bank, one of the most digitally agile banks in Sri Lanka that supports smaller business clients by increasing financial inclusion, especially as Sri Lanka’s economy recovers following the COVID-19 pandemic. Since our partnership in 2004, we have closed 6 transactions with them as they serve over 600k customers and employ more than 3k employees, and is now one of the largest banks in the country. The loan will help NTB receive necessary long-term financing to continue supporting and growing its SME portfolio.

Maxima Microfinance

Microfinance institutionin Cambodia

We supported our new customer Maxima Microfinance with financing through MASSIF for USD 4 mln. They provide inclusive financial solutions to low-income households and SMEs across 8 provinces in Cambodia, with over 6,800 active borrowers, almost all of which are women and 80% in rural areas. Our support will help further their long-term growth in their micro-loan portfolio, reducing inequalities and promoting gender equality.

LB Finance

Non-banking financial institution in Sri Lanka

FMO provided a USD 15 mln loan facility to our new customer LB Finance, with USD 5 mln mobilized through our FMO IM funds. A deposit-taking non-banking financial institution (NBFIs) in Sri Lanka, LB Finance provides hire purchase, finance lease, and vehicle loan facilities, supporting 600,000 micro- and SME clients across the country as one of the top NBFIs. Our loan facility supports the growth of their portfolio, with an emphasis on agri- and youth clients, encouraging the formalization of SMEs and micro-enterprises across the country, while also being supplemented with a Capacity Development program to emphasize Client Protection Principles best practices and end uses of gold loans.

Private Equity

Paymob

Fintech provider in Egypt

Through the FMO Ventures Program we supported one of Egypt’s largest FinTech players, PayMob, by contributing USD 3 mln in its Series A round of funding, to the tune of USD 18.5mln. The platform helps merchants accept payments through various products and solutions, accounting for 85% of all mobile wallet transactions in Egypt. The funding will help with regional expansion throughout the MENA area, meet increasing demands, improve product offerings, and expand merchant networks.

Innoviti

Payment processing in India

Innoviti is one of the largest POS terminal and payment processing companies in India. Their terminals are used by numerous SMEs/MSMEs throughout the country to facilitate digital payments for their customers, providing in-store payment for thousands of merchants across hundreds of cities and towns. FMO Ventures Program and Bessemer Venture Partners have each invested USD 2m in the USD 4m top-up round in Innoviti, further bridging the digital divide and facilitating financial inclusion.

Waycool

AgriTech company in India

WayCool Foods & Products is an AgriTech company that aims to build India’s largest, tech-enabled, food logistics & distribution platform. By transforming the fragmented Indian agri-space, farmers’ incomes can improve, food wastage is reduced, and consumers have access to higher quality produce. FMO provided an additional USD 3mln of risk capital to support WayCool’s operations, expansion, and capex and working capital needs.