A selection of our investments
We continued to invest in our focus markets utilizing FMO's own capital, public programs and mobilized funds. Through these investments, we contribute toward the SDGs.
AEE Power Ventures, S.L.
Energy company active in Sub-Saharan Africa
US$0.75 mln | Access to Energy Fund | SDG 7, 8, 10, 13
According to the World Bank, just 19 percent of the 108 million people in the Democratic Republic of the Congo have access to electricity, with rural areas making up just 1 percent. Through the Access to Energy Fund, FMO provided a US$ 0.75 mln repayable development contribution to AEE Power Ventures, which will be used in the early development stage of the ESSOR mini-grid project. This project will improve access to electricity in isolated Congolese cities through hybrid solar mini-grids. In total, three mini-grids will be built in Bumba, Gemena, and Isiro, towns with over 150,000 people. The projects will initially comprise 27 MW PV generation and 80 MWh of battery storage. FMO’s funding will be used for external development costs, such as legal analyses, technical and feasibility studies, and E&S advisors.
SolarX
Solar business active across West Africa
Up to €3 mln Convertible Note/Equity and €2.5 mln Mezzanine | FMO Ventures Program and Building Prospects Fund | SDG 7, 8, 13
SolarX is a commercial and industrial solar rooftop business active in Mali, Burkina Faso, Senegal, and Côte d'Ivoire, countries with lower electrification rates. They reduce inequality by providing access to energy through affordable, clean, and reliable solar power assets to customers that rely on costly diesel-powered generators and an unreliable grid. In 2022, FMO committed to investing up to €5.5 mln, funded by FMO’s Ventures Program and the Dutch Government’s Building Prospects Fund, alongside long-time partner Energy Access Ventures Fund. In addition to access to electricity, the funding will also reduce electricity costs, minimize dependence on diesel-powered generators, and thereby reduce CO2 emissions.
Scatec ASA - Virtuo Finance S.A.R.L.
Renewable energy platform active in Egypt
US$ 72.5 mln debt | FMO | SDG 13
Scatec is a renewable energy producer that provides affordable and clean energy worldwide. They refinanced the non-recourse project debt for six solar power plants in Egypt, with a total capacity of 380 MW by issuing a 19-year US$334.5 mln green project bond, with a climate bond certificate from the Climate Bond Initiative. The refinancing will further improve Scatec’s and its project partner’s future cash distributions from the power plants. FMO signed a purchase note to invest US$72.5 mln in this innovative climate finance transaction, the first of its kind in Africa.
Georgia Renewable Power Operations
Renewable energy platform active in Georgia
US$30 mln debt | FMO | SDG 13
Georgia mainly relies on hydropower to generate electricity. In the past years, the government has focused on private investments to increase the country’s energy security and reliance on renewable energy. FMO acted as an anchor investor in the largest green bond with a US$30 mln participation when Georgia Renewable Power Operations (GRPO), which owns and operates four hydropower plants and the only wind farm in Georgia, issued US$80 mln of the first-ever green secured notes in Georgia. The proceeds of the bonds were used to refinance the company’s existing debt and ensure a successful implementation of GRPO’s medium-term strategy, with the aim of boosting the Georgian capital market and paving the way for more sustainable bond instruments.
JSC Credo Bank
MSME-focused bank in Georgia
GEL 100 mln (around US$30 mln) debt | FMO | SDG 8, 10
The Georgian economy is strongly dependent on agriculture, thanks to its rich soil and temperate climate. Some of its exports include nuts, wine, fruits such as grapes, apples and peaches. The government has made agriculture one of its development priorities, as the country is uniquely positioned to be an exporter to various markets for these commodities. Credo Bank is a market leader in agriculture. With 81 branches in the country and around 460,000 clients, Credo ranks fifth out of 14 banks in Georgia, and focuses on micro and SME loans, as well as mobile banking. FMO provided a GEL 100 mln (around US$30 mln) facility to its long-term customer, which is 100 percent labelled under Reducing Inequalities. The funding will be used to help Credo increase its long-term local currency funding, with an emphasis on growing its youth portfolio.
Trans-Oil Group
Agribusiness logistic provider active in Eastern Europe
US$25 mln | FMO | SDG 2, 8
Trans-Oil Group (TOG) operates across the Republic of Moldova, Ukraine, Romania, and Serbia, where it offers grain handling, storage, trading, and farming, as well as oilseed crushing. They provide exports to international traders and importers across the EU, Middle East, North Africa, and Asia. However, most Ukrainian ports on the Black Sea have shut down because of the war, severely impacting the global food supply chain. TOG has been able to ensure a steady flow of grain into Romania via the Danube River and owns two grain terminals amongst a few operating port facilities in Ukraine. The war led many commercial banks to limit working capital funding, increasing the need for financing from FMO. FMO signed a US$25 mln participation in an ING-led US$117 mln pre-export facility to its long-term customer, contributing to global food security by enabling the transport of more than 5.5 mln tons of grain to international markets.
Horizon Capital Growth Fund IV
Ukrainian and Moldovan technology and export-oriented impact fund
US$20 mln equity | FMO | SDG 8
The full-scale Russian invasion of Ukraine has drastically disrupted Ukraine’s economy, although IT and technology companies have shown resilience and have become a lifeline for the country. IT exports, now a key source of foreign currency inflows, are at a historical peak and continue to grow. To that end, FMO committed US$20 mln to the Horizon Capital Growth Fund IV, managed by Horizon Capital, a leading private equity firm that invests in fast-growing technology and export-oriented companies in Ukraine and the surrounding region. The fund is focused on growth equity investments, with a first close of US$125 mln and a target final close of US$250 mln. FMO has invested in all of Horizon’s predecessor funds, with the funding aimed at providing growth capital and support to local SMEs.
Sahyadri Farms
Integrated fruits and vegetables value chain
INR 1 bln (~US$12 mln) equity | FMO | SDG 2, 8, 10, 13
Waste in India’s supply chain for fruit and vegetable amounts to 30 percent due to inefficiency, outdated technology, lack of capital, and inequality. In a country where nearly three-fourths of the population is younger than 45, this waste reduces the income of young entrepreneurs. Sahyadri Farms is the leading fruits and vegetable export and processing company, reaching over 18,000 farmers across India. Sahyadri Farms provides a digital platform that enhances farm productivity and increases farmer income. It walks farmers through the entire farming process, including crop choice, farming practices, farm inputs, access to marketplaces, and more. FMO provided an INR 1 bln (roughly US$12 mln) equity investment alongside other investors, for a close of INR 3.1 bln (almost US$40 mln). The funding will help grow the number of farmer companies supplying to and benefiting from the Sahyadri ecosystem. Furthermore, Sahyadri Farms plans to expand its processing capacity and further enhance its infrastructure.
Alcazar Energy Partners II Fund
Renewable energy-focused impact fund in the MENA and ECA region
Up to US$40 mln equity | FMO | SDG 13
The Alcazar Energy Partners II Fund, managed by Luxembourg-based Alcazar Energy Partners, aims to mitigate the effects of climate change by funding the growth of renewable energy projects across emerging markets in the Middle East, Northern Africa, Europe and Central Asia. The fund focuses on early stage development of renewable energy projects and their in-house capabilities in relation to technical, E&S and developmental aspects of renewable energy projects, in line with our intensified focus on market creation. In total, it is estimated the fund will enable the development and construction of over 2GW of clean energy infrastructure and will save around 3.2 mln tons of GHG emissions. The fund reached a first close of US$338 mln, with a final target size of US$500 mln and hard cap of US$650 mln. Alongside seven other private institutional investors, FMO contributed to the fund, providing an equity investment of up to US$40 mln.
Banco Pichincha
Universal bank in Ecuador
US$20 mln | FMO | SDG 5, 8, 10, 13
Microfinance activities have increased in Ecuador in the last several years but nearly half of adults do not have a banking account. Banco Pichincha is the largest bank in Ecuador, providing personal and corporate banking, as well as microfinance services. Reaching 4.6 mln Ecuadorians and serving more than 70,000 SMEs, it has the most sizable microfinance portfolio. The bank offers alternative distribution products such as village banking, reaching non-banking users in shops or kiosks to increase financial inclusion. Banco Pichincha has a strong Green and Gender strategy, having disbursed over US$400 mln in green loans and a portfolio of around US$1 bln in loans supporting women-owned or led (M)SMEs. FMO was the lead arranger and lender for a US$116 mln syndicated facility alongside six other partners, providing US$20 mln in financing. Thirty-five percent of the facility will be used to finance women-owned SMEs, and 65 percent for Green clients and projects.
I&M Bank Kenya
Tier 2 Bank in Kenya
US$15 mln guarantee (debt) | MASSIF | SDG 10
Kenyan MSMEs, particularly youth and women-owned businesses, generate more than one-third of the country’s GDP, despite struggling to gain access to finance. I&M Bank is a wholly owned subsidiary of I&M PLC and has been an FMO customer since 2010. Recently, they have been focusing on increasing financial inclusion for MSMEs, as well as offering digital solutions (e.g., FinTech partnerships) for a smooth transition into an increasingly digital era. FMO provided a US$15 mln NASIRA portfolio guarantee in the local currency, enabled by the EU’s European Fund for Sustainable Development and MASSIF, the financial inclusion fund FMO manages on behalf of the Dutch Government. The NASIRA program is aimed at underserved entrepreneurs in Sub-Saharan Africa and countries neighboring Europe. The guarantee will foster financial inclusion, helping both banked and unbanked MSMEs in Kenya that have been hit by COVID-19. Additionally, the facility will include capacity development and technical assistance for non-financial services such as digitization, enhancing MSME lending practices, and financial literacy.