FMO
Who We Are
FMO was established in 1970 as a public-private partnership. The Dutch government holds 51% of our shares, while commercial banks, trade unions, and other private sector members hold the remaining 49%.
We are a public-private development bank supervised by the Dutch Central Bank (DNB), with a transparent management structure and reporting system.
We invest in businesses, projects, and financial institutions to support sustainable private sector growth in developing and emerging markets.
What We Do
By investing in more than 85 countries, we support job and income creation in regions where we can make the most difference in improving people’s lives. Our role extends beyond financing: we help businesses operate and grow responsibly, transparently, and sustainably.
Our clients serve millions of customers, so adopting good practices significantly impacts local development. They create jobs, provide income, generate taxes, and contribute to a healthy private sector.
With our approach, we aim to demonstrate to other investors that strong financial returns and positive impacts in developing and emerging economies can coexist. Our success in higher-risk markets gives them confidence to join us, enabling us to mobilize more funding for our clients.
We work with partners ranging from European Development Finance Institutions (EDFIs) and civil society organizations to investors, serving entrepreneurs worldwide who build and grow their companies to contribute to positive change.
How We Do It
We strive to create sustainable impact in developing countries. Our work is guided by the FMO Sustainability Policy Universe.
Our integrated approach ensures sustainability is at the core of our operations and aligns with the Sustainable Development Goals (SDGs). The steps required to create value at the individual project level include:
1. Sourcing Opportunities
We identify potential opportunities through an established network in developing countries in our main sectors. Our initial assessment focuses on the country, investment plan, development impact, and our role as a financier. Our investments increasingly target projects promoting a more inclusive and greener economy.
2. Screening Opportunities
If the financing opportunity meets our investment criteria, we analyze potential risks and challenges. We conduct a Know-Your-Customer (KYC) assessment to ensure compliance with anti-money laundering, corruption, and terrorism financing regulations. We also categorize the project based on potential impacts on environmental, social, and human rights conditions and governance structures.
3. Due Diligence
To fully understand risks and opportunities, we conduct comprehensive due diligence surveys, including on-site research via local visits. We meet with the client and regional stakeholders to discuss the impact of FMO financing on their businesses and environmental, social, and human rights risks. We analyze the client’s tax practices and policies with expert advice when needed. If gaps are identified in meeting international standards, we develop an action plan to mitigate and manage risks and encourage positive development.
4. Stakeholder Engagement
We hold regular meetings and dialogue sessions with our key stakeholders and provide input opportunities for decisions on new transactions with high environmental or social risk profiles. To ensure no critical concerns are overlooked, we disclose potential investments online. From identification to implementation, we consult vital stakeholders to appropriately evaluate, monitor, and manage the impacts of all projects.
5. Contracting
For every investment, we assess environmental, social, and governance risks, identify areas for improvement, and develop action plans for further development. After internal approval, we sign an agreement with our clients, ensuring our requirements and conditions are legally binding. We disclose our investments on our website after contracting.
6. Monitoring and Value Creation
Throughout the investment lifecycle, we monitor the financial performance and progress of our clients on environmental, social, and governance requirements. We receive annual or more frequent financial reports, conduct ESG audits with the help of local consultants, and visit them every two years depending on the project’s nature. We provide capacity building and technical assistance to help our clients improve their businesses and identify new opportunities when necessary.
Related Sectors
I. Agribusiness, Food, and Water
To address the challenges of a growing global population exceeding nine billion with fewer resources, FMO prioritizes agribusiness by investing across the value chain, enhancing food security, promoting sustainability, and encouraging inclusive development.
We offer diverse financing options, including long-term loans, equity, mezzanine financing, and working capital. Where possible, we provide financing in local currencies.
FMO finances companies along the agribusiness value chain:
• Primary production: agricultural crops, livestock, production, and fisheries.
• Processing: crushing, storage, manufacturing, and packaging.
• Trade: sourcing-trading and export.
• Distribution: cold chain and logistics, and retailing all products.
II. Energy
FMO finances long-term projects that power economies, promote a transition to low-carbon systems, and ensure energy security.
Energy shortages are one of the most significant barriers to billions of people’s progress. Everyone needs affordable and reliable energy, whether for cooking, charging phones, or powering offices and factories.
We offer a full range of financing solutions, including (syndicated) loans and equity investments, for energy generation and distribution projects, off-grid solutions, renewable energy, and efficiency improvements. Our initial investments often encourage other development finance institutions and commercial banks to co-finance these projects. We are committed to promoting leading international standards for environmental compliance, land ownership, business integrity, and social practices.
III. Financial Institutions
FMO works with select financial institutions to create a world where finance is more sustainable and accessible.
Sustainable economic growth begins with creating opportunities for individuals. FMO’s key role is to help entrepreneurs and businesses thrive by providing them with the necessary tools. For example, we actively seek long-term financing solutions and often partner with other lenders through syndication facilities.
We offer a range of financial products, including long-term loans, private equity, mezzanine financing, and other customized solutions. Our loans typically have a maturity of five to seven years and are denominated in USD, EUR, or local currencies where possible.
Additionally, we leverage our knowledge and networks to help our clients increase access to finance, reduce inequality, and promote green financing.
Mezzanine financing bridges the gap between senior debt and equity in a company. It can be structured as preferred equity or unsecured debt and may convert into an equity stake for investors. It is often used to fund growth prospects, such as acquisitions and business expansion. It provides creditors the right to become stakeholders (collateral) in case of non-repayment.