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.
These months we focus 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.
Miro Forestry Development Ltd.
Integrated forestry company in Ghana and Sierra Leone
Miro operates the largest forestry plantations in West Africa and associated wood processing facilities. To date, Miro has planted in total around 19,000 hectares of mainly Eucalyptus, Acacia, Gmelina and Teak – all FSC certified. In addition, Miro processes the harvested timbers into high value ready-made plywood, edged glued boards and utility poles for local and export markets. Current funding round (FMO, together with FinnFund, Mirova, FinDev Canada and Aqua Ventures) will – amongst others - be used to increase wood processing capacity (mainly plywood) of the company. FMO is providing USD 6 mln.
ENGIE Energia Peru S.A.
Private power generation and energy infrastructure company in Peru
ENGIE Energia Peru S.A. is the second largest private power generation and energy infrastructure company in Peru, supplying over 10% of the total power consumed in the country. FMO follows IDB (Inter-American Development Bank) under its A-loan with USD 100 mln for the construction of the Punta Lomitas Wind Farm, a 296 MW greenfield wind farm and 60 kilometers of an associated transmission line, located about 300 kilometers south of Lima. It will be the Company's first wind farm and the largest of its kind in Peru.
Georgia Renewable Power Operations
Renewable energy platform in Georgia
FMO participated as an anchor investor in the largest green bond in the country. Georgia Renewable Power Operations (GRPO), owning and operating 4 hydro power plants and the only wind farm in Georgia, successfully issued US$80 million green secured notes on October 12, 2022, where FMO is participating with USD 30mln. GRPO is part of the Georgian Renewable Power Holding and one of the leading renewable energy platforms in Georgia, a client of FMO for more than 10 years. The proceeds of the bonds will be used to refinance the company’s existing debt and ensure a successful implementation of GRPO’s medium-term strategy. This will hopefully be a big boost for the Georgian capital market and pave the way for future sustainable and green bond instruments in the country.”
Leasing company in Turkey
FMO has signed a 5 year EUR 100 million senior unsecured syndicated term facility with AKLease. AKLease offers financial leases mainly in the fields of renewable energy and textile. Since 2020, the company started offering a green program (ECOLease, RE assets as well as energy & resource efficiency) and it ambitions to have its entire portfolio ECOleased by 2030. The facility FMO provides is ~80% earmarked for renewable energy (mainly solar panel leasing contracts) and energy efficiency products. The rest is reserved for micro and SME clients of AKLease, who mostly lease new equipment and long-term assets. The loan demonstrates FMO’s sustained commitment to existing clients in challenging times as Turkey faces volatile country conditions and macroeconomic pressures.
Banco de Finanzas, S.A.
Nicaraguan universal bank
Banco de Finanzas is a privately owned universal Nicaraguan bank that focuses on the financing of SMEs and residential mortgages in Nicaragua. Banco de Finanzas and FMO signed a 5-years USD 10mln (USD 6mln committed, USD 4mln uncommitted) loan facility on top of our existing loan. Main purpose of the loan is to support the SME portfolio growth. Supporting Nicaraguan SMEs is key to maintain local jobs and decent work. Additionally, FMO’s loan is strongly aligned with climate action, as part of the funds will be dedicated towards funding green projects of the BDF’s clients.
Microfinance Institution in Hoduras
Banco Popular is the leading microfinance institution in Honduras with 60,000 clients. During the last years the bank expanded to rural areas, where the need for financial services and credit for agricultural enterprises is more critical. Institutional investors IFC and CABEI (BCIE) and impact investor Bamboo Capital Partners have sold their full participation in Banco Popular (together almost 65% of the total shares). Their shares have been taken over by new shareholders Incofin and Triple Jump (through ASN Microkredietfonds) while FMO and BIO as existing shareholders increased their positions. BIO, CABEI, FMO and IFC have been Banco Popular’s investors since 2007. The above-mentioned strategy will be fostered with the new shareholders as well.
BluePeak Private Capital Fund
Impact investor focused on Africa
FMO has increased its investment in the BluePeak Private Capital fund, from USD 15mln to USD 20 mln. This was done off the back of encouraging progress by this first-time mezzanine fund manager in its deployment toward impactful and attractive businesses. BluePeak has also further enhanced their institutional capability and the team’s local presence.