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. Every month we provide an overview of our new investments.
FMO signed two transactions with ECOM. We provided a bilateral subordinated loan of USD 30mln, aimed at strengthening ECOM’s capital and liquidity position, thereby supporting the role the company plays in helping transform rural economies by supporting smallholder farmers and promoting sustainable practices in its value chains. FMO also arranged a syndicated seven-year loan facility of USD 155 million for ECOM, with BII, BIO, DEG and PROPARCO as co-investors. The facility aims to support ECOM’s operations and investments throughout the supply chain in origin markets including Africa, by financing its working capital needs in light of continued high and volatile cocoa and coffee prices.
GH2 Industries is launching a vertically integrated manufacturing facility to convert agricultural waste streams into valuable chemicals. This greenfield project embodies a unique, integrated, and sustainable business model transforming waste products like rice husk and broken rice into commercially useful by-products for various industries, including food and pharmaceuticals. The project is supported by a USD 5 million investment from DFCD and an additional USD 5 million from Building Prospects, in collaboration with GH2 Group, The Bank of Punjab, and AGRI3 Fund. This investment is poised to benefit Pakistan's economy by boosting exports, creating jobs, enhancing food production and security, mitigating climate impact and improving farmer livelihoods.
FMO’s investment of USD 10 million will fund the company's investment in electric vehicle batteries and battery swapping stations infrastructure in Uganda. The Borrower is 100% owned by Watu Holdings Limited, a leading provider of motorcycle financing in (amongst others) Uganda and Kenya. The lack of clean and affordable mobility solutions holds back the shift to a green transportation system in Uganda, a least-developed country (LDC). This transaction addresses this deficiency and aligns well with FMO’s Energy and overall strategy.
Our Vietnam portfolio was expanded with a new customer: the Southeast Asia Commercial Joint Stock Bank, a listed, medium-sized commercial bank. Under the Friendship Facility framework led by Proparco, we invested USD 40 million for onward lending to Women SMEs (50%), general SMEs (40%) and qualifying green projects (10%).
As a B-lender, FMO participated with USD 25 million in an EBRD-led syndicated loan facility of up to USD 147 million for XacBank in Mongolia. The funding will be used to provide on-lending to MSMEs in Mongolia, specially targeting young entrepreneurs (<35 years), offering them the necessary funding to grow and sustain their businesses. Xacbank was created as a result of the merger of the two largest NBFI’s in Mongolia in 2001. Today, XacBank is Mongolia’s 4th largest bank by total assets and provides an array of financial services to over a million retail, MSME and corporate customers.
