news - Monthly Transaction Overview November


Monthly Transaction Overview November

December 5, 2022

The Hague, 5 December 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. 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. Recently, our 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 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

Bank in Nicaragua  

FMO and Banco de la Produccion (Banpro) signed a 7-year USD 25mln loan facility with 75% of the committed tranche used to finance green projects and the remaining 25% to expand access to finance for women-owned SMEs and women entrepreneurs in Nicaragua. This transaction aligns with FMO’s 2030 strategy: Pioneer-Develop-Scale, and contributes to SDG 13 (Climate Action), SDG 15 (Reducing Inequalities) and SGD 8 (Decent work and economic growth). Banpro is a long-standing partner in Nicaragua. Since FMO’s first green transaction in 2014, Banpro has spearheaded the development and financing of green lines in in the country, which is now a consolidated product offering. With this new facility, in addition to financing green projects, FMO looks to support Banpro in its next steps towards inclusivity. 

Banco de America Central
Bank in Guatemala

FMO will be supporting Banco de America Central with a USD 200 mln loan to build their green loan portfolio and expand their presence in the SME segment. At least USD100 mln will be allocated to fulfil the loan purpose of green loans. The purposes of the loan fit perfectly with the ongoing strategy of BAC to become a more sustainable financial institution and to support local SME clients. Up to USD 50 mln will be provided by unfunded risk participants. FMO will also strengthen the bank’s environmental and social risk management as well as to support the expansion of their green loan portfolio via capacity development.  

Banco Pichincha
Universal bank in Ecuador

FMO has arranged a USD 116.75mln syndicated loan for long-standing client Banco Pichincha. The proceeds of the loan will be dedicated to financing women-owned SMEs and financing green clients or projects, thereby contributing to reducing inequalities and addressing climate change. Banco Pichincha is the largest universal bank and largest microfinance bank in Ecuador. Banco Pichincha and FMO’s work align as the bank is a pioneer in financial inclusion with a well-defined gender strategy and a clear mission to include more people in the financial system in Ecuador. Banco Pichincha is a leader in sustainability, having signed the UN Principles for responsible business and joined the Net Zero Banking Alliance.

Digital start-up bank in Uzbekistan 

FMO signed a USD 15 million senior Term Loan with TBC Uzbekistan (TBC UZ), a digital bank established in October 2020 by FMO long standing partner TBC Bank Group Plc. TBC UZ was the first digital bank to obtain a banking licence in Uzbekistan. TBC UZ will use FMO’s funding for their customers to finance eligible Green energy efficient products and Micro business loans supporting FMO’s ambitions in Green and Reducing Inequalities. FMO is the first lender to TBC UZ.

Credit Access Grameen Limited (CAGL)  
Non-banking financial company in India

FMO signed a local currency loan, equivalent to USD 30 mln, with FMO’s existing client: Credit Access Grameen Limited (CAGL), India. The transaction has a 50% green label for the purpose of financing sanitation and cookstoves and a 100% reducing inequalities label. Through this transaction, FMO directly contributes to SDG’s 8 (Decent work and Economic growth), 10 (Reduced inequalities) and 13 (Climate action). CAGL is the number one MFI in India, with stable performance, strong management and shareholders and good portfolio growth. The mission has the philosophy of balancing economic growth with social responsibility to create sustainable change in the lives of our customers. 

PT Bina Artha Ventura 
Microfinance institution in Indonesia

FMO closed a USD 10 million facility agreement with PT Bina Artha Ventura (“Bina Artha”), a microfinance institution based in Indonesia. Bina Artha has been an FMO partner since 2016 and serves a majority of women micro-entrepreneurs in Java and Sulawesi. Bina Artha offers working capital through a modified version of the traditional microfinance methodology to women who do not have or only have partial access to the formal financial sector. In addition, BAV provides access to business loans for small enterprises. Through the partnership with Bina Artha, FMO contributes to SDGs 8 and 10.

Agribusiness, Food and Water

Forest carbon accelerator

At COP27, FMO announced a USD 2.5mln investment in Treevive, a forest carbon accelerator. The investment is made through our Mobilising Finance for Forests' (MFF) development capital facility. Treevive will create a Carbon Development Platform (CDP) to advise, structure, finance, and accelerate carbon projects. MFF’s investment of early-stage development capital will enable Treevive to raise further funds from additional investors to the resource intensive project development stage of NCS projects. The goal is to bring new investment-ready businesses to the market and improve the pipeline for other Development Finance Institutions and commercial investors looking to invest in the forestry and land use sector.

Conservation International  
Non-profit in nature protection and conservation

FMO invested EUR 1.3 mln in a long-term partnership with Conservation International at COP27. The initiative is directed at innovative finance and science in the agriculture and forestry sectors. Through the expected knowledge exchange between the partners, capacity building will reach beyond Conservation International and FMO to the local communities and government while also helping FMO steer its forestry strategy. To date, Conservation International has helped to protect more than 6 million m2 of land and sea across more than 70 countries.

Private Equity

Solevo Holding B.V.  
Agricultural-input and chemicals distributor

FMO co-invested USD 30m alongside the African Development Partners III (ADP III), managed by Development Partners International (“DPI) and co-investors to acquire a 100% shareholding in Solevo Holding B.V. The consortium will invest through a Guernsey-domiciled SPV vehicle, ADP III Holding Budapest LP. Budapest is a market-leading Sub-Saharan agricultural-input (plant nutrition and crop protection) and chemicals distributor, headquartered in Switzerland with operating activities mainly in Ivory Coast and Cameroon, and smaller operations in Senegal, Mali, Burkina Faso, Angola and Madagascar. This investment aligns with FMO’s objective of investing across the agribusiness value chain to enhance food security and to support inclusive and sustainable development.


Alcazar Energy Partners II
Asset Manager focused on Renewables in Dubai

FMO closed a USD 40mln investment in the Alcazar Energy Partners II fund (AEP II). AEP II is managed by Alcazar Energy (AE) and focuses on renewable energy investments – utility scale wind, solar PV, storage – in the MENA and ECA region. AEP II brings together eight public and private institutional investors: EBRD, EIB, EMCAF / Allianz GI, IFC, AIIB, DEG, Proparco and FMO. AEP II has reached a first close of USD 338mln and is expected to reach a final close of USD 500mln. Through this investment, FMO supports the development of renewable energy in Egypt, Jordan and the wider MENA and ECA regions. It is estimated that it will enable the construction of over 2GW of clean energy infrastructure across the selected emerging markets, power over a million households and save about 3.2m tons of GHG emissions.

Abydos Solar PV
Egypt-incorporated special purpose vehicle 

FMO has signed a USD 36mln loan to Abydos Solar Company, a subsidiary of existing client AMEA Power, to develop, build and operate the largest solar PV power project Egypt. The USD226mln financing package includes loans from the International Finance Corporation (IFC) and the Japan International Cooperation Agency (JICA). Located in the governorate of Aswan, Abydos will generate power priced at 2 US cents/kilowatt hour, among the least expensive rates globally. The project will increase access to clean and affordable power in Egypt and be key to the country’s National Climate Change Strategy 2050, which calls for renewables to provide 42 % of total power generation by 2035.

Share this page