news - Monthly Transaction Overview — December 2021

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.

Financial Institutions

Access Bank Nigeria

Commercial bank in Nigeria

FMO signed two transactions worth USD 70 mln with long-standing client Access Bank.  In addition, together with Invest International, the first ‘Dutch Desk’ has been opened in Nigeria at Access Bank’s facilities.  The first transaction is a Nasira guarantee facility for USD 25 mln in local currency equivalent, and the 2nd is a USD 45 mln funding line that will focus on female entrepreneurs and green projects. FMO catalysed USD 35 mln from partners such as NN EMLF and Munich Re.  The Dutch Desk will facilitate Dutch businesses in doing business in Nigeria, that within Africa is increasingly becoming an important export market. 

Bancop S.A.

Private universal bank in Paraguay

FMO has provided a top-up of USD 5 mln to Banco  Para la Comercialización y la Producción. Its loan portfolio is dedicated to SMEs and corporate clients mainly active in the agriculture and cattle value chains, as well as other sectors of the economy. The total facility of USD 30 mln will be dedicated to finance SME clients, in line with FMO’s definition, thereby contributing to decent work and economic growth.

Sekerbank

Financial institution in Turkey

FMO has provided a 3-year SME facility of 30 mln EUR to Sekerbank (of which 15 mln uncommitted), a financial institution with strong background in the Anatolian rural areas in Turkey. Sekerbank, with its origins as sugar beet cooperative (established in 1953), is still an important player in the Turkish agricultural supply chain. This facility is earmarked for SMEs and contributes to FMOs Reducing Inequalities target, as Sekerbank focuses on rural SMEs in Turkey, an underserved segment. In Middle Income country Turkey FMO has a strong impact focus, with almost all investments oriented towards the sustainability agenda and/or inclusive development. This good strategic fit with FMO’s impact agenda is also the reason of the cooperation of FMO and Sekerbank of more than 10 years. 

Sidian Bank Ltd

Tier 3 universal bank in Kenya

FMO signed a USD 15 mln NASIRA Guarantee facility with existing client Sidian Bank Ltd. The client mainly caters for the lower end MSME’s and has a vast geographic footprint throughout Kenya. Currently women owned businesses account for 23% of client’s portfolio with an ambition to further grow this. The NASIRA guarantee will support young & female entrepreneurs and MSMEs affected by the COVID19 crisis in Kenya. A minimum of 30% of the total guarantee facility will be allocated specifically to the young and female entrepreneur segments. By providing this NASIRA guarantee, FMO supports Sidian Bank to enhance its women & youth financing and continue supporting (M)SMEs during the COVID19 crisis, unlocking much needed liquidity to Kenyan (M)SMEs.

Equity Bank (Kenya) Ltd

Tier 1 universal bank in Kenya

FMO signed a USD 25 mln Basel 2 Subordinated Loan facility for key partner Equity Bank Kenya. Our facility is part of a total sub-loan facility of USD 165 mln arranged by IFC. The loan will enhance the Bank’s regulatory capital, which has been affected by deteriorating asset quality because of COVID-19, and the funds will be earmarked towards EBK’s SME and Climate Finance portfolio. This facility will help shore up EBK’s capital and facilitate increased lending to Kenyan SMEs and climate financing activities which are both vital for the sustainable country’s recovery amid the COVID19 pandemic.

Produbanco

Universal bank in Ecuador

Produbanco is the fourth largest bank in Ecuador with Total Assets amounting to USD 5.5 bln and is a long-standing client of FMO. The financing of FMO and FMO-managed funds totaled USD 48 mln (a USD 38 mln senior loan and USD 10mln sub-debt loan), dedicated to financing women-owned SME clients and SMEs, contributing to decent work and economic growth activities. Through this facility, FMO realizes its strategic goals to finance SMEs and to catalyze other investors as the FMO loans are part of larger syndicated loan facilities arranged by FMO

Medical Credit Fund II

Pan-African debt fund investment

FMO participated via a EUR 7.5mln subordinated loan in the closing of Medical Credit Fund II, a new debt fund set-up and managed by the Stichting Medical Credit Fund and which will provide debt financing to healthcare SMEs active in Kenya, Tanzania, Uganda, Nigeria, and Ghana. The transaction, financed via a mix of Building Prospects (5 mln) and MASSIF (2.5 mln) is part of a larger funding round which was anchored by the Dutch Ministry of Foreign Affairs and that provided the first loss tranche of EUR 7.5 mln earlier this year to cater to the demand for loans during the heights of the COVID-19 crisis. The transaction is highly impactful and will contribute to SDG’s 3, 8, 10. MCF II also qualifies under the 2X Challenge as its funding will enhance access to capital for gender-smart healthcare businesses and help to increase health services for female patients.

Agribusiness, Food and Water

Nibulon

Integrated grain/oilseeds exporter in Ukraine

Nibulon is a leading grain/oilseeds exporter and producer, operating one of the largest logistics networks of grain storage and transportation in Ukraine. FMO is participating in a syndicate of international banks to support Nibulon's growing working capital need due to increasing commodity prices. The funds ensure Nibulon’s capacity to source and export grains from Ukraine to deliver to countries where it is needed all over the world. In this way, FMO contributes to tackling zero hunger (SDG 2) and to decent work and economic growth (SDG 8).

Agrofertil S.A.

Input Distributor in Paraguay

FMO committed an additional USD 15 mln to our long-standing and key account Agrofértil S.A., the leading provider of agricultural inputs and agronomic services in Paraguay. Agrofertil offers a comprehensive one-stop-shop for more than 2,100 farmers, including pre-harvest finance, technical assistance, storage,and commercialization of grains. The proceeds of the loan will be used to extend Agrofertil’s silo networkt and strenghen the capital structure of the company. Therefore, the new funding will enhance Agrofértil's capacity to provide pre-harvest financing to farmers and will contribute to the further development of agriculture sector, a key pillar of Paraguay's economy.

Ulusoy Un Sanayi ve Ticaret A.Ş.

Wheat-flour milling company in Turkey

Ulusoy is one of the largest wheat-flour milling companies in Turkey, milling, and selling flour domestically and for export to Middle East, Africa, and Asia. FMO is providing a new long-term facility of up to USD 25 mln to Ulusoy for the acquisition of Söke Değirmencilik San. ve Tic. A.Ş. (“Söke”), a local flour milling company, producing, and marketing packaged flour and specialty products and for  the acquired operations’ working capital requirements. The transaction contributes to tackling the commitment to zero hunger (processing and distributing flour as a staple food and contributes to food security in less developed markets in Middle East, Africa and Asia) and decent work & economic growth.

Private Equity

Ezdehar Mid-Cap Fund II Coöperatief

Egypt-focused Private Equity Fund

 FMO provided a USD 20 mln commitment to the Ezdehar Mid-Cap Fund II Coöperatief U.A. (“Ezdehar II” or “the Fund”), a Private Equity Fund investing in in mid-sized corporates operating in Egypt. The Fund will seek to build a diversified portfolio of fast growing companies in need of a hands-on partner to support institutionalization as well as corporate and operational development. Having committed to the predecessor fund in 2016 (Ezdehar Egypt Mid-Cap Fund Coöperatief U.A.), FMO is pleased to deepen its relationship with a longstanding partner, and to support the Fund in a challenging fundraising environment.

Mawingu Networks

Wireless Internet Service Provider active in Kenya

FMO, through Building Prospects, has increased its investment in Mawingu Networks with USD 600k. Mawingu Networks seeks to leverage its low-cost distribution infrastructure and proprietary technology platform to provide internet to rural and peri-urban unconnected communities in Kenya, with expansion plans across East Africa. FMO’s investment is part of a larger pre-Series B convertible note that will provide Mawingu with the necessary funds to grow the business further and reach more customers in Africa.

Easy Solar or the Azimith Group Corp.

Solar Home system company active in Sierra Leone and Liberia

The Ventures Program has increased its exposure with USD 1 mln to Azimuth Group Corp. (active under the brand name Easy Solar), which is the leading provider of off-grid energy in Sierra Leone, and currently expanding to Liberia. The company focuses on last mile distribution of smaller sized SHS’s and lanterns on a pay-as-you-go (PAYGO) basis. The objective of the investment is to allow the company to continue its expansion both inside and outside Sierra Leone, and aligns with FMO’s objective to increase energy access.

AfricInvest Financial Inclusion Vehicle

Pan-African Fund

As part of its sixth closing, FMO committed an additional EUR 0.9 mln to AfricInvest Financial Inclusion Vehicle, an evergreen investment fund focusing on financial inclusion in Africa by improving access to financial services for the growing African population. This brings the total of FMO’s commitment to EUR 20.92 mln.

WayCool Foods

AgriTech company in India

FMO supported WayCool Foods with a latest investment of USD 6.6 mln through our Ventures Program. As an AgriTech company transforming India’s fragmented agri-space, WayCool solves various pain points throughout the food logistics supply chain: improving farmers’ income, reducing food waste, and increasing consumer access to high-quality produce. Through the latest round of funding, WayCool will continue to rapidly scale for impact through its innovative smallholder-based model, not only within India, but also throughout international markets.