Three Dutch institutions, development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Algemene Bank Nederland (ABN) Amro, and fund manager Privium, recently announced the opening of the FMO Privium Impact Fund. The fund will offer ABN Amro’s private banking clients the opportunity to co-invest with FMO in loans to private sector companies in developing countries. In addition to financial returns, the fund’s impact will be measured based on job creation and the reduction of greenhouse gas emissions [1].
Yvonne Bakkum, the Managing Director of FMO Investment Management B.V., said, “By providing a loan to a local bank in Bangladesh, for example, this bank has the opportunity to offer credit to more local SMEs [small- and medium enterprises]. This increases the chances of these entrepreneurs to be successful and to create jobs within their companies.”
Solange Rouschop, Global Head of Investment Services & Sustainability at ABN Amro, added, “The FMO Privium Impact Fund is a solution from which clients can expect both financial and social returns, with regular liquidity.”
As of 2015, FMO reported total assets of EUR 8.4 billion (USD 9.05 billion) and total loans of EUR 4.2 billion (USD 4.6 billion). As of December 2015, ABN Amro reported total assets of EUR 390 billion (USD 433 billion), return on assets (ROA) of 1.1 percent and return on equity (ROE) of 12.0 percent. The fund’s target size is EUR 200 million (USD 222 million).
By Kevin van den Brink, Research Associate
About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a development bank that was founded in 1970 by the Dutch government, which owns 51 percent of the institution. Its other stakeholders are commercial banks, trade unions, employers’ associations and individual investors. FMO supports governments and invests in financial institutions, energy firms and agribusiness operators in developing countries through loans, guarantees and other investment promotion activities, including local-currency investments. As of 2015, FMO reported total assets of EUR 8.4 billion (USD 9.05 billion), total loans of EUR 4.2 billion (USD 4.6 billion).
About ABN Amro
Algemene Bank Nederland (ABN) Amro is a Netherlands-based financial institution offering investment banking, investment management and financial advisory services to corporations, financial institutions, governments and retail clients. Founded in 1991, the firm is headquartered in Amsterdam and maintains offices in 63 countries worldwide. As of December 2015, ABN Amro reported total assets of EUR 390 billion (USD 433 billion), return on assets (ROA) of 1.1 percent and return on equity (ROE) of 12.0 percent.
FMO Privium Impact Fund
The FMO Privium Impact Fund was created in 2016 by three Dutch institutions, development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Algemene Bank Nederland (ABN) Amro, and fund manager Privium. The fund focuses on investments in private sector companies in developing countries and measures its success based on financial return, job creation and the reduction of greenhouse gas emissions. Its target size is EUR 200 million (USD 222 million).
Sources and Additional Resources
[1] Information provided to MicroCapital directly by FMO
MicroCapital Universe Profile: FMO Development Bank
MicroCapital Universe Profile: ABN Amro
MicroCapital Universe Profile: FMO Privium Impact Fund
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