Netherlands Development Finance Company

FMO

Type	Private
Industry	Development Finance
Founded	1970
Headquarters	The Hague, Netherlands
Products	Equity Financing, Loans, Trade Finance, Credit Guarantees
Total assets	EUR:4.6 billion (US$6.3 billion) (2009)
Website	Homepage

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), which translates into Netherlands Development Finance Company, is a bilateral private-sector development bank based in the Hague, the Netherlands.

History

It was created in 1970 by the Dutch Government, commercial banks, employer's association, labor unions and private investors, to make investments in private sector projects in developing countries and emerging markets. In March 2008, FMO achieved bank status; the bank is officially under the supervision of the Dutch Central Bank (DNB). As of December 2009^[update], FMO was present as a development finance partner in over eighty (80) different developing countries and emerging markets.^[1]

Overview

Although 51% of the shares is held by the Dutch government, FMO operates as a commercial company. Its mandate is to provide long term capital for projects in countries that commercial investors do not yet feel comfortable investing in. Furthermore, FMO has a strict policy on maximizing development impact: a methodology designed to make sure that FMO's return on investment is not just financial, but also has positive environmental and social aspects.

FMO invests risk capital in companies and financial institutions in developing countries. As of December 2009^[update], FMO's investment portfolio totaled EUR:4.6 billion (about US$6.3 billion). That makes FMO one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO has an AAA rating from Standard and Poor's.

FMO also 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 collaborates with other International finance institutions. Currently, FMO has a risk-sharing agreement with the Asian Development Bank (ADB), to promote trade finance in Asia.^[2] FMO also collaborates with individual financial institutions in emerging markets and developing countries, including LOLC Micro Credit Limited in Sri Lanka.^[3]

Ownership

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

FMO Stock Ownership

Rank Name of Owner Percentage Ownership 1 Dutch Government 51.00 2 Large Dutch Banks 3 Dutch Employers' Association 4 Dutch Trade Unions 5 Individual Dutch Investors Total 100.00 External links Website of FMO Company Profile At Lindedin.com See also List of banks in the Netherlands Dutch Central Bank Dutch Government References ^ The History of FMO ^ ADB, FMO Of the Netherlands To Share Risk on Trade Finance in Asia ^ LOLC Micro Credit Received US$10 Million Facility From FMO In 2009