news - Monthly Transaction Overview August 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. 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

Lendable MSME Fintech Credit Fund
Debt financing vehicle (SICAV-RAIF) in Luxembourg

FMO, through MASSIF, has signed an additional USD 5mln commitment for the Lendable MSME Fintech Credit Fund, helping fund manager Lendable to catalyse additional (commercial) investors such as Allianz and JICA, ahead of the fund’s final close in August 2022. This will allow Lendable to reach the targeted USD 100mln fund size. FMO co-anchored this high-impact debt fund which closed in 2021 through a USD 5 mln investment in the mezzanine tranche. The fund’s first close reached USD 46.75 mln via commitments from leading impact and DFI investors from Europe and the US. The fund is providing senior secured debt financing to young Fintech companies which provide credit to underserved MSME’s in emerging and frontier markets in Africa and South-East Asia. MASSIF’s investment will contribute to SDG’s 8 and 10.

Chamroeun Microfinance Plc
Non-deposit taking Microfinance Institution in Cambodia

FMO, through Massif, signed a 5-year loan facility of USD 10mln with a new customer, Chamroeun Microfinance Plc (“CMP”). Chamroeun has a rich social heritage, is CPP certified, and provides small, uncollateralised loans predominantly in local currency and mainly to women in rural and semi urban areas for income-generation purposes. Proceeds of the facility will be used to grow the loan book by on-lending to eligible sub-borrowers thereby supporting economic growth and financial inclusion, in line with FMO’s objectives. The investment is the first DFI loan for Chamroeun and provides a stable source of long-term funding.

JSC TBC Bank Georgia 
Universal bank in Georgia

FMO signed a Georgian Lari 300 million (Georgian Lari, an equivalent of US$103 million) term loan with longstanding client JSC TBC Bank (TBC Bank), a leading universal bank in Georgia. With a market share of around 40% in loan products, TBC Bank is currently the largest bank in Georgia providing a full range of services to corporate, SME and retail customers (around 2.5 million clients in a 3.7 million population of Georgia). The FMO facility will be used partially for Green and Reducing Inequalities, with a specific attention to the youth portfolio of the bank. The 5-year bullet repayment will continue to support TBC Bank in its de-dollarization process and provide long-term local currency funding. The local currency loan is made possible through the issuance of a bond by FMO in Georgia contributing directly also to the development of the domestic capital market.

Agribusiness, Food and Water

Sucafina
Coffee exporter in East Africa

FMO has signed to support Sucafina– an FMO client since 2014, leading coffee exporter in East Africa, and fifth largest coffee trader globally – in its growth journey in Brazil and Colombia. This USD 29.5mln risk participation in a USD 275 mln Rabobank-led loan will allow the company to source more coffee from smallholders in Colombia. The transaction also includes a pricing discount tied to attaining sustainability KPIs linked to deforestation, coffee certification, and tracking carbon emissions across supply chains in both Brazil and Colombia.

LAAD 
Pan American bank in Latin America

FMO closed a facility with LAAD Americas N.V, a longstanding partner in Latin America, to support their investments in companies falling within their green strategy. This will be achieved through a USD 50mln transaction comprising USD 40mln in long-term funding and a USD10mln Green Tranche. LAAD is a pan-Latin American bank financing export-oriented SMEs in the agricultural sector, many of which are active in primary agriculture. LAAD supports companies which contribute to job creation in rural areas, playing a vital role in global supply chains and support the sourcing efforts of global trade. LAAD is active in 27 countries across Latin America and the Caribbean, and it is estimated that in 2021 they supported the creation of 9700 jobs.

Trans-Oil 
Agribusiness company in Moldova 

Trans-Oil Group (TOG) is a leading vertically integrated agribusiness group located across Moldova, Ukraine, Romania, and Serbia, offering services such as grain handling, storage, and trading, farming, and oilseed crushing. Moldova plays a key role in sunflower seeds production and is a critical exporter of sunflower oil in the Black Sea Region, with TOG being the only processor and exporter of sunflower seeds in the country. FMO signed a participation in a facility designed to support export flows and strengthen food security in the region of the Black Sea basin; the USD 25 mln participation in a USD 110 mln ING-led Pre-Export Facility is expected to help Trans-Oil by bringing c.a. 5 mln tons of grains from Black Sea basin to international markets. The geopolitical situation has severely impacted the global food supply chain, with most Ukrainian ports closing. Under its export contracts, however, Trans-Oil has been able to ensure a steady flow of grains upstream, via the Danube waterways into Romania.