Netherlands Development Finance Company

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FMO
Private
Industry Development finance
Founded 8 July 1970
Headquarters The Hague, Netherlands
Products Equity financing, loans, trade finance, credit guarantees
Revenue IncreaseAftertax::133 million (US$:150 million) (2013)[1]
Total assets :6.184 billion (US$:6.974 billion) (2013)[citation needed]
Number of employees
336 (2013)
Website www.fmo.nl

The Netherlands Development Finance Company (FMO), or Dutch development bank[2] called Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. in Dutch, is a bilateral private-sector international financial institution founded 1970, based in the Hague, the Netherlands. It is licensed as a bank and supervised by the Dutch Central Bank. In 2013 its assets were close to US$7 billion.

History[edit]

FMO was founded in 1970 by the Dutch Government, by commercial banks, the national employers' association, labor unions, and private investors to invest in private sector projects in developing countries and emerging markets.[citation needed]

In March 2008, FMO achieved bank status; the bank has been under the supervision of the Dutch Central Bank (DNB).[citation needed]

As of December 2009, FMO was a development finance partner in over eighty developing countries and emerging markets[3][dead link]

Overview[edit]

FMO is one of the largest bilateral private sector development banks worldwide.[citation needed] FMO´s mandate is to provide long term capital for projects in countries in which commercial investors do not yet dare to invest.[citation needed] FMO invests risk capital in companies and financial institutions in developing countries.[citation needed] FMO has a strict policy on maximizing development impact with a methodology designed to make sure that FMO's return on investment is not just financial but also has positive environmental and social effects.[citation needed]

The Dutch government holds 51% of the shares, but FMO operates as a commercial company.[citation needed] Thanks to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not able or not prepared to take.[citation needed] FMO has[when?]a AAA rating from Standard and Poor's.[citation needed]

FMO manages funds for the Dutch government (Ministries of Foreign Affairs and Economic Affairs) to maximize the development impact of private sector investments. For instance, the Capacity Development Program provides funding with the aim to create access to management and technical know-how. FMO has partnered with a number of firms to invest in private equity funds in developing countries, including Ghana (Fidelity Capital Partners Limited),[4] China (Aureos Capital),[5] Kazakhstan/Romania/Turkey (ADM Capital),[6] Mexico/Costa Rica/Belize (Aureos Capital),[7] South Africa (Lereko Metier),[8] Belize/Costa Rica/Nicaragua (EMP Latin America),[9] China/India/Vietnam (SBI Ven Capital),[10] Central America (REAL Infrastructure Capital Partners),[11] Haiti (Leopard Capital),[12] and sub-Saharan Africa (Fairview Capital Partners).[13]

FMO collaborates with other international finance institutions. Currently,[when?] FMO has a risk-sharing agreement with the Asian Development Bank to promote trade finance in Asia.[14] FMO collaborates with individual financial institutions in emerging markets and developing countries, including Clean Energy Development Bank in Nepal, LOLC Micro Credit Limited in Sri Lanka[15] and the TBC Bank in the Republic of Georgia on the Green Lisi Town project.[16]

As of December 2011, the bank´s total asset valuation was €5.06 billion (US$6.34 billion), and its shareholders' equity was €1.665 billion (US$2.09 billion).[17]In 2013, it had risen to 6.184 billion (US$:6.974 billion).[citation needed]

Ownership[edit]

The stock of FMO is held by individual, corporate and public Dutch entities as outlined in the table below:[18][year needed]


FMO Stock Ownership
Rank Name of Owner Percentage Ownership
1 Dutch Government 51.00
2 Large Dutch Banks 42.00
3 Dutch Employers' Association
4 Dutch Trade Unions
5 Individual Dutch Investors
Total 100.00

See also[edit]

References[edit]

  1. ^ "December 2013 Key Financial Figures". Annualreport.fmo.nl. Retrieved 9 November 2017. 
  2. ^ "Corporate Factsheet" (PDF). Fmo.nl. Retrieved 9 November 2017. 
  3. ^ "The History of FMO". Fmo.nl. Retrieved 9 November 2017. 
  4. ^ "Jacana Partners with Ghana's Leading Private Equity Fund". Fmo.nl. Retrieved 9 November 2017. 
  5. ^ "Aureos Capital". Frontierfinance.dk. Retrieved 9 November 2017. 
  6. ^ "EBRD, IFC, FMO, and ADM Capital Launch Fund to Help Companies in CEE, Central Asia, and Turkey Recover from Crisis". Fmo.nl. Retrieved 9 November 2017. 
  7. ^ "Aureos Fund Invests in Costa Rican Private Health Care Complex". Lavca.org. Archived from the original on 23 October 2013. Retrieved 9 November 2017. 
  8. ^ "PIC, FMO, and DEG invest in Lereko Metier Sustainable Capital Fund". Fmo.nl. Retrieved 9 November 2017. 
  9. ^ "FMO Commits US 16 Million to the Central American Mezzanine Infrastructure Fund". Fmo.nl. Retrieved 9 November 2017. 
  10. ^ "New Investment Fund Focusing on Financial Sector in Emerging Asia". Fmo.nl. Retrieved 9 November 2017. 
  11. ^ "FMO Invests in Latin Renewables Infrastructure Fund". Fmo.nl. Retrieved 9 November 2017. 
  12. ^ "FMO Supports the Launch of Leopard Haiti Fund". Fmo.nl. Retrieved 9 November 2017. 
  13. ^ "FMO and Fairview Introduce Fund of Funds for Africa". Fmo.nl. Retrieved 9 November 2017. 
  14. ^ "ADB & FMO of the Netherlands To Share Risk on Trade Finance in Asia". Adb.org. Retrieved 9 November 2017. 
  15. ^ "Archived copy". Archived from the original on 2011-07-19. Retrieved 2010-11-23. 
  16. ^ "Lisi Development website". Lisi.ge. Archived from the original on 29 October 2013. Retrieved 9 November 2017. 
  17. ^ "December 2011 Financial Statement". Annualreport2011.fmo.nl. Retrieved 9 November 2017. 
  18. ^ "Contact us". Alios-finance.com. Retrieved 9 November 2017. 

External links[edit]