FMO - the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (Netherlands Development Finance Company)

About Organization...

FMO is the Development Bank of the kingdom of the Netherlands. It provides financing to the private investment projects in the developing markets. The Bank's controlling block of shares (51 %) belongs to the Dutch Government. The holders of other shares are the leading Dutch banks, as well as trade unions, enterprises and private individuals.
The Bank specializes in financing the projects with a higher risk of investment when other banks cannot credit the project or offer to do it on the terms, unacceptable for the borrower. The credit granting by FMO should stimulate these banks to participate in the syndicated financing and thus act as a catalyst in the process of investments placement.
Funds are granted to both large-, small- and medium-scale projects, however only large-scale projects receive investments directly from FMO, while the rest - through the local financial intermediaries (banks and leasing companies).
The financial portfolio of the Bank consists of various projects in 71 countries of the world. The Bank has funded some projects in Russia.

Central and Eastern Europe, Asia, Africa, Latin America
(Financing is granted only to the enterprises, which are located in the states defined, according to the last report of the World Bank, as the countries with a low or average level of income.)

- Agriculture and fish-breeding
- Agroindustrial complex
- Mining industry
- Consumer goods production and means of production
- Human services (including the community facilities)
- Banking
- Insurance business
Funds are not granted to the projects of production of weapons and ammunition

- Confirmed by appropriate calculations financial solidity and profitability of the project
- Availability of own investments in the realization of the project and local partners availability
The Bank cannot be the only source of the project's funding. The initiator of the project should make provisions for investing his own means and have, as the minimum, one financially solid local partner. Besides, the Bank can attract additional financial sources for the syndicated financing.
- Creation of permanent workplaces with good working conditions and social guarantees
- Conformity of the project, as the minimum, to the ecological norms of the country of its realization. It is desirable that the project should comply with the world ecological standards, in particular with the World Bank criteria.
- The technology, used within the framework of the project, should be generally accepted; innovation technologies are accepted for consideration only when they are being introduced by experienced competitors for investments
- Quality management in the company-competitor for investments
The availability of a Dutch partner is not mandatory and is not taken into account when the projects are being selected for financing

Credit
Investment in the share capital

Minimum investment: On average - 3 000 000 NLG
Period of investment: 5 years

The Bank can grant credits or participation financing to the investment projects.
The Bank does not acquire controlling blocks of shares, nor can it be the largest shareholder. The Bank's participation in the share capital is usually limited to 5 years. The amount of investments averages 3 million NLG. The Bank conducts constant monitoring of the enterprise that has been granted financing and provides assistance in its management.
The credits are granted in the Netherlands guldens, US Dollars or DEM. The minimum amount of credit is 4 million NLG, average - about 10,5 million NLG. Credits are granted for the period from 3 years and up. Granting of the syndicated credits is a variation of crediting. Such scheme is used to finance the large-scale and expensive projects, for which several financial organizations are attracted. Being the general creditor, FMO finances at least 25 % of the syndicated credit. Other creditors operate under the direction of and according with the FMO's principles of activity.

The Small-Scale Enterprise Fund
The program is intended for financing the investment projects realized by the small-scale enterprises of the less developed countries. Financing is granted solely via the network of the local financial intermediaries, which are the recipients of the means for their subsequent redistribution. The financing is granted on the long-term basis and mainly in the domestic currency. The funds can be granted only to the small-scale enterprises that meet the following criteria: number of employees - no more than 30 persons, value of the capital assets - no more than 100 thousand USD (including the cost of the ground area and the buildings). The Fund's financing is carried out by the Dutch Ministry of Foreign Affairs.
The Share Capital Financing Program
The program is intended for financing the newly-created enterprises and financial organizations, especially in the low-income countries of Africa. The means are granted to the enterprises directly or through the intermediary in the form of participation financing or unsecured credit. The Bank's maximum share amounts to 600 thousand guldens for the enterprises and 1 million - for financial organizations. The means, for the most part, are granted in the domestic currency. The Bank does not acquire controlling blocks of shares, nor can it be the largest shareholder. The local shareholder must possess no less than 20 % of the share capital. The greater part of the means for the program's realization is granted by the Dutch Ministry of Foreign Affairs

Address: P.O.Box 93060
2509 AB The Hague, the Netherlands
Phone: +31 70-314 96 96
Fax: + 31 70-324 61 87
E-mail: info@fmo.nl
Internet: http://www.fmo.nl

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