The entrepreneurial development bank
FMO is the entrepreneurial development bank of the Netherlands. It has a commitment to growing a healthy private sector in developing countries. This is how lasting development impact is generated. What FMO brings to the table is more than the scarce long-term finance their clients need to grow their businesses. They are committed to minimizing negative environmental impacts – and, where possible, create positive impact – and ensuring international labor standards are the norm. FMO supports their transparency challenges so that governance becomes a day-to-day best practice. The deals they do with these visionary entrepreneurs are about more than money. FMOs clients commit to using their undoubted entrepreneurial skills to grow their businesses financially, transparently and in an environmentally and socially responsible way.

FMO's investment portfolio is €3.4 billion (2007), making it one of the largest bilateral development banks worldwide. FMO has an AAA rating from Standard and Poor's and has obtained a banking license from the Dutch Central Bank (DNB) in March 2008. FMO was formed in 1970 through a partnership between the Dutch government and Dutch financial institutions, industry, trade and labour unions. Thanks in part to its relationship with the Dutch government, FMO is able to take risks that commercial financiers are not - or not yet - prepared to take.

Thanks to its special position and shareholder structure, FMO can provide longer-term capital to private sector companies active in developing countries. While FMO finances a portion of the capital needed, its participation also enables other financial institutions to join in investments, thus mobilizing significantly more funding than any single investor could generate on its own. FMO offers a full range of financial instruments for the benefit of private companies and financial institutions in developing economies. A mix of funding can be provided to meet the needs of individual projects:
Loans (including syndicated loans)
Equity & Mezzanine
Guarantees

FMO funds & facilities

MASSIF contributes to the development of financial services for small businesses and micro-entrepreneurs by increasing financial resources available to them and by strengthening the financial intermediaries that service these groups.

Least Developed Countries (LDC) Infrastructure Fund provides long-term financing for (public-private) projects in energy, telecom, transportation, water, environmental and social infrastructure projects.

Access to Energy Fund (AEF) contributes to improving access to affordable and sustainable energy services for the world’s rural poor. Sub-Saharan Africa is a particular target area.

Capacity Development (CD) program facilitates the transfer of know-how and skills that help clients improve their businesses. This service is usually incorporated into financial structures so that we can offer a full ‘package’, especially as our social, environmental and governance requirements are high.

Investment Facility Emerging Markets (FOM) supports the development of emerging markets by encouraging investments by Dutch enterprises, especially SMEs.