news - Monthly transaction overview – December


Monthly transaction overview – December

January 5, 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

AK Lease
Financial support leasing subsidiary in Turkey
FMO has signed a 5 year USD 25 mln green finance facility with AK Lease. Turkey has been hard hit by the Covid crisis and this loan demonstrates FMO’s sustained commitment to existing clients in challenging times. With the new facility, AK Lease will be able to grow its lease portfolio in the areas of Renewable Energy (mainly solar panels) and Energy Efficiency. AK Lease aims to grow its RE / EE portfolio from 12% to 15% of total assets, and to become one of the leading leasing companies in these ‘green markets’.

Bancop S.A.
Financial Institution in Paraguay
FMO signed an USD 7.5 mln (+USD7.5 mln uncommitted) Term Loan with Bancop S.A. in Paraguay. This 7-year loan is essential for the bank to be able to provide long tenor loans to SME clients, mainly in the agri and productive sectors, key for the Paraguayan economy. Bancop has the clear mission of targeting and providing integral banking services to SME producers which are underserved by traditional banks and has been successful in its strategy, growing its portfolio and creating a strong positioning within its core segment, while maintaining a sound financial performance thanks to the shareholders’ ties with the agriculture, cattle and agroindustry sectors.

Equity Bank
Commercial bank in Kenya
FMO signed an USD 25 mln loan with longstanding client Equity Bank Kenya (EBK). The proceeds of the loan will be used by EBK to finance the SME portfolio growth. FMO aspires to build a strong relationship with EBK along the mutual strategy of sustainable commercial development through financing MSMEs in Kenya's real economy (including Young, Female and COVID-19 affected entrepreneurs), thereby enabling those companies to invest in their businesses, create jobs and contribute to the overall economic development and growth of the economy.

Neogrowth Credit Pvt. Ltd
Fintech SME merchant cash advance lender in India
FMO has closed an INR 740 mln loan to NeoGrowth Credit Pvt. Ltd. The loan to NeoGrowth achieves FMO's goals of providing access to finance to first generation entrepreneurs. Traditional bank underwriting excludes a large portion of creditworthy SME merchants because they do not have reliable financial statements, credit history ("thin file" customers) or equipment or similar assets that can be provided as security for a bank loan. NeoGrowth assesses creditworthiness based on the cash-flows through the POS terminals of merchants and loan collection happens electronically on a daily basis, addressing seasonality in the business of merchants. NeoGrowth will use the funding from FMO to on-lend to micro, small and medium-sized retail merchants.

Privately owned foreign bank in Turkey with a focus on SMEs
FMO recently closed an USD 25 mln transaction with a 5-year tenor with its longstanding customer Odeabank. Via this transaction FMO supports local small and medium-sized enterprises (SMEs) in Turkey in the current challenging macroeconomic environment due to the impact of COVID 19 and market volatility. In addition, FMO supports the trade finance activities of Odeabank via a trade finance guarantee, aimed at supporting export opportunities of the SME clients of Odeabank.

Samunnati Financial Intermediation & Services Private Limited
Non-Banking Financial Company in India
FMO has committed to an EUR 5mln in INR equivalent loan to Samunnati. The loan to Samunnati achieves FMO’s goals of providing access to finance in the agricultural value chain. Samunnati enables growth in the value chain of an agricultural ecosystem. While empowering farmers and expanding Agri Enterprises, Samunnati propels the value chain to greater heights and better yield through financial, non-financial and customized solutions. With the loan, Samunnati aims to provide solutions to all players across the entire value chain through financial intermediation, market linkages and advisory services.

Access Bank
Full-service commercial Bank located in Africa and the UK
FMO closed an USD 10 mln subordinated debt from Finnfund in the Access Bank PLC transaction, a longstanding client of FMO for over 17 years and the largest bank in Nigeria. By closing this secondary transaction, FMO is benefitting from capital as well as client and country limit relief and contributing to mobilization in challenging times.
Over the years, FMO has provided a long series of bilateral and syndicated senior, subordinated and trade finance products to Access Bank and to several of their subsidiaries in Africa, also with the support of the MASSIF fund. Whereas in the past two years FMO’s focus has been to strengthen the bank’s capital (through 2 syndicated Tier-II facilities), for the near future FMO will direct its support mainly towards leadership ambitions in sustainable finance, as well as towards the rapid growth of its Africa network.

Private Equity

South African AgriTech startup
FMO and Cathay AfricInvest Innovation have committed to a ZAR 250 mln investment in Aerobotics, a South African AgriTech start-up developing intelligent tools to the feed the world. The investment is part of a Series-B round led by Naspers Foundry with participation from the FMO Ventures Program and the Cathay AfricInvest Innovation Fund. Aerobotics enables tree and fruit farmers not only to monitor their crops but also to increase their overall yield and reduce their footprint, through a combination of satellite and drone imagery coupled with machine learning algorithms. The funding will boost international expansion and technological development, as well as support Aerobotics’ local operations. For more information, see the full press release.

Manufacturer and exporter of agricultural products in the Ukraine
FMO has committed to an additional USD 3 mln loan to existing client Allseeds. Allseeds is a leading 100% export-oriented logistics infrastructure operator and oil seeds processor, located in the deep seaport of Yuzhny in Ukraine. FMO/DCP invested USD 15 m for a 16% in 2018.

Amber Capital
Manager of value-oriented and event-driven strategies in global equity markets with a focus on Europe
FMO has closed an USD 7 mln loan from Building Prospects to the EU-Armenia SME Fund managed by Amber Capital. The fund targets to raise USD 75 m and had a first closing in September of USD 31 m. It is the first fund of its kind investing in Armenian SMEs. The fund benefits from a USD 10m first loss tranche from the European Commission and is backed by London based asset manager Amber Capital.

APKU Finance
Integrated feed and poultry business in the Ukraine
FMO and DCP have committed to a syndicated USD 20 mln loan to APKU Finance, an integrated feed business, for a 22% stake in the company. APKU intends to develop an businessplan for vertical integration including animal protein. FMO will make sure expepansion in this direction will be compliant with EU rules and regulations and animal welfare standards. 

Central America Small Enterprise Fund IV
Private Equity Fund managed by LAFISE Investment
FMO has signed an up to USD 10m commitment to Central America Small Enterprise Fund IV (CASEIF IV) as an anchor investor in the first closing of the fund amounting to USD 35m (target fund size USD 75m). CASEIF IV targets mezzanine and growth equity investments in small and midsize companies in Central America, Panama, Dominican Republic and Colombia. The strategy of the fund will be broadly in line with CASEIF III (where FMO is invested). The Fund will be multi-sectoral with a focus on agroindustry, food and beverages processing.

MEDA (the Mennonite Economic Development Associates of Canada)
Development cooperation consultant active in Myanmar
FMO has signed an EUR 0.20 mln loan with MEDA through the MASSIF Fund. The funding objective is to collaborate with CDC to create an ecosystem development program in Myanmar called the Myanmar Enabling Investment Programme (MEIP). FMO funds this project to gain better insights into the Myanmar market, which will contribute to FMO’s current and future activities in the country linked to access to finance and capacity building for the Missing Middle of Small and Growing Businesses.

Fintech platform for cash-first markets in Africa
FMO signed an USD 500k convertible loan from MASSIF with Nomanini – a FinTech that builds technology solutions to improve the business of informal, cash-based and un(der)banked retailers across Africa. Based in South Africa, Nomanini acts as a SAAS company and offers its white-label solutions and platform to banks, MFIs and FMCG manufacturers. Using transaction data, Nomanini supports credit scoring, enabling banks, MFIs and FMCG to offer float loans or supplier credit to boost the retailer’s business. Today, key partners include Standard Bank and Nestlé, which is exceptional for a FinTech start up.

Agribusiness, Food and Water

AgriPlace B.V.
Cloud platform organization in the Netherlands
FMO signed an EU 0.13 mln loan with existing client AgriPlace. The product of AgriPlace supports smallholder farmers in their certification efforts and compliance needed to sell their produce and provides access to European importers of organic produce. It reduces the costs and complexity of certification for the farmers. At the same time, AgriPlace offers traders a solution for a transparent supply chain from field to retailer. AgriPlace was one of the five winners of the Finture Solutions Challenge 2020. They won a repayable development contribution of EUR 125,000 and are using it to develop a remote auditing module for their platform and a network functionality to enable smallholder visibility.

Ecom Agroindustrial Corp Ltd
Global commodity merchant and sustainable supply chain management company
FMO signed an USD 200 million 7-year syndicated DFI facility with our client Ecom Agroindustrial Corp Ltd. FMO has been acting as the arranger for this facility, all together catalyzing USD 175mln, with FMO’s ticket being USD 60mln. Ecom will use the funds to finance farmer initiatives throughout the supply chain, capex investments and permanent working capital needs. Ecom’s inclusive and integrated supply chain model contributes to improving livelihoods of smallholder farmers.

Agricultural commodity trader and supply chain manager
FMO closed an USD 90 mln facility with existing client ETG. Agri Commodities and Finance (“ACF”) is the main trading company of ETC Group (“ETG”), a large and diversified agricultural commodity trader and supply chain manager with most of its footprint in Africa. The syndicated facility of USD 90mln 2.5-year working capital loan will allow ETG to have sufficient liquidity to continue its operations, maintain employment and continue its support to farmers across Africa. A considerable share of ACF’s sourcing is from Least-Developed Countries. Furthermore, the transaction also supports access to food with a focus on Sub-Saharan Africa, and by various types of agronomic support to the network of smallholder farmers supported by ETG.

IDH Farmfit Fund
Public-private impact fund for smallholder farmers
FMO has committed EUR 10mln to the IDH Farmfit Fund. Other investors in the Fund are the Dutch Ministry of Foreign Affairs (providing a EUR 50mln first loss tranche), and the supply chain managers Jacobs Douwe Egberts, Unilever, and Mondelez for an aggregate amount of EUR 27.5mln. Source of funds: 50% Building Prospects & 50% MASSIF. To strengthen smallholder value chains, the Fund will offer a range of financial instruments to actors across Africa, Asia, and Latin America. Prospective investees are Traders & Input Providers, Agri-SMEs, Financial Institutions, and Agri Tech & Fintech companies. Furthermore, a USD 30mln TA facility has been established, which is funded by DFID and the Gates Foundation.


Producer & designer of high-quality biodigesters
FMO has signed an USD 1 mln senior loan with Sistema.Bio, client of FMO since 2019. Sistema.Bio is a company that focuses on the manufacturing and sales of biodigesters and accessories (clean cooking solutions) to smallholder farmers. This facility together with an additional equity convertible facility from current and new investors, will provide Sistema.Bio with sufficient capital to continue their operations and expansion, while they prepare for their next equity raise. Through this facility, FMO also provides repayment flexibility to the client in these challenging times.

Solar project in Burkina Faso
FMO closed an EUR 32,4 mln senior loan to finance the development and construction of the Kodeni solar project in Burkina Faso that is developed by Africa REN Invest Ltd. It is funded partly by the FMO managed Access to Energy Fund, FMO and the Interact Climate Change Facility (“ICCF”). With the loan, a total of four projects are financed that will add approximately 110MWp / 90MWac of solar energy, while simultaneously significantly contributing to reducing the country’s dependence on imported electricity and fossil fuels. This will also bring down the overall cost of electricity generation, putting Burkina Faso well on its track to reach its energy and climate change goals.

NL Business

World Waternet
Non-profit organization offering sustainable water solutions in emerging economies
FMO has committed to an EUR 0.15 mln loan to World Waternet. FMO will fund up to 50% of the required external project costs from the COVID response carveout allocation from the Development Accelerator (DA) facility to support World Waternet and its partners to pilot the surveillance of SARSCoV-2 (COVID 19) virus in sewage and wastewater in Kenya. The project aims to provide authorities in Nairobi, Kenya with information on the prevalence and trends in the circulation of the SARSCoV-2 (COVID 19) virus in Nairobi to support in responding to the pandemic in an efficiently and timely manner to prevent further spread.
It is a cost-effective innovative solution to complement health surveillance systems in combating COVID-19 in Nairobi and potentially Nation-wide. Additionally, through FMO’s support KWR and Waternet can be positioned as a preferred partner to the relevant Kenyan authorities to scale up this innovative and impactful methodology in the Country.

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