Sustainability Bonds raise funds that support FMO lending for green and inclusive projects.
FMO’s green eligibility criteria are aligned with the Multilateral Development Banks (MDBs) framework on climate change mitigation and adaptation finance.The eligible projects may include:
Inclusive finance focuses on expanding access to affordable and responsible financial products and services to the poor and vulnerable populations. This includes microfinance as well as directly financing organizations that are often unable to gain access to financial products and services such as small- and medium-sized enterprises. A wide range of financial products and services are incorporated within the remit of inclusive finance including savings, credit, insurance, remittances, and payments (source: UNPRI).
Eligible projects include microfinance institutions (MFI), and financing of micro, small- and medium-sized enterprises (MSMEs) through financial intermediaries in developing and emerging markets in which FMO operates. To be eligible for the use of proceeds, financial institutions should:
Projects are classified as microfinance if they meet the following criteria:
Projects are classified as SMEs if they meet the following criteria:
|Size of enterprise||Micro-size enterprise||Small-size enterprise||Medium-size enterprise|
|Number of employees||<10||10<50||50-300|
|Total assets||<USD 100,000||USD 100,000 < USD 3 million||USD 3 million < USD 15 million|
|Annual sales||< USD 100, 000||USD 100,000 < USD 3 million||USD 3 million < USD 15 million|