news - Monthly Transaction Overview - October 2023


Monthly Transaction Overview - October 2023

November 16, 2023

As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. In line with our updated 2030 Strategy: Pioneer, Develop, Scale, FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track record of enabling people to employ their skills and improve their quality of life.

Financial Institutions

First City Monument Bank Ltd.
SME and renewable energy financing in Nigeria

FMO signed a USD 60 mln senior loan agreement with First City Monument Bank Ltd. It leverages the European Development Finance Institutions (EDFI) collective, which took on USD 30mn of the syndicated transaction. FCMB is a tier II commercial bank with headquarters in Lagos, Nigeria. The bank has been an FMO client since 2014 when FMO had arranged a 6yrs USD 60 million syndicated term loan. FMO subsequently provided a USD 60mn Tier-2 facility in 2019 that is set to expire in 2024. The new transaction is earmarked for on-lending to the bank’s renewable energy and SME portfolios and is eligible for both the Green and RI label.

MCE’s Empowering Sustainable Agriculture Fund LLC
Agriculture focused global debt fund

FMO signed a USD 10mln senior loan facility to a recently established fund and new client to FMO, MCE’s Empowering Sustainable Agriculture Fund LLC (“MESA Fund”). MESA Fund is a debt fund that supports sustainable agriculture in emerging markets. It provides funding to small and growing agri-businesses and to rural-focused financial service providers that target smallholder farmers and women-owned agri-businesses, which are considered one of the most financially excluded segments. MESA Fund is managed by MCE Social Capital, a US-based non-profit impact investing firm with a solid 15+ years of track record.

Banco Promerica de Costa Rica
MCE’S Empowering Sustainable Agriculture Fund LLC

Banco Promerica de Costa Rica S.A. is a privately owned universal bank in Costa Rica and part of the Promerica Group, one of the largest financial groups in Central America and a strategic partner to FMO. The new USD 30 million senior term facility includes USD 15 million committed amount and USD 15 million uncommitted amount and will be completely directed to green projects in line with FMO green eligibility criteria, aimed at energy efficiency, green buildings, renewable energy and other eligible categories. Through this loan, FMO contributes to its Climate Action ambitions by supporting the increase in investments in climate mitigation and adaptation.

Private Equity

Husk Power Systems, Inc.

Leading solar mini-grid developer focusing on India and Sub-Saharan Africa

Husk Power Systems, the leading mini grid developer serving rural communities in Sub-Saharan Africa and India with access to energy, has secured a new round of equity investment totalling USD 43 million. The funding will accelerate the rollout of solar mini grids in rural and peri-urban Nigeria and India, enabling increased access to clean, affordable, and reliable energy. New investors include STOA, which led the round, DFC, and Proparco, with follow-on investments from existing shareholders including Swedfund and FMO. FMO contributed USD 2 million from Building Prospects. This investment shows commitment to an existing client that plays a crucial role in solving the energy access problem in un(der)served markets through clean energy.