Netherlands Development Finance Company

FMO
Private
Industry Development Finance
Founded 8 July 1970
Headquarters The Hague, Netherlands
Products Equity financing, loans, trade finance, credit guarantees
Revenue

Aftertax:€:255 million (US$:296 million) (2017)

Increase [1]
Total assets €:9.2 billion (US$:10.7 billion) (2017)[2]
Number of employees
 444 (2017)
Website www.fmo.nl

The Netherlands Development Finance Company (FMO), or Dutch development bank[3] 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 2017 its assets were over US$10 billion.

History

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

Overview

FMO is the Dutch development bank.FMO´s mandate is to provide long term capital for projects in countries in which commercial investors do not yet dare to invest. FMO invests risk capital in companies and financial institutions in developing countries. 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.

The Dutch government holds 51% of the shares, but FMO operates as a commercial company. 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. FMO hasa AAA rating from Standard and Poor's.

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.

As of December 2017, the bank´s total asset valuation was €8.32 billion (US$9.67 billion), and its shareholders' equity was €2.83 billion (US$3.29 billion).[4]

FMO has invested in a coal power plant near Bargny in Senegal, called Sendou I. The project triggered a debate about the impact on the environmental circumstances of the inhabitants.[5] Following this, the Independent Complaints Mechanism of FMO has undertaken a Compliance Review and a Mediation process, [6] in reaction to which the Management Board of FMO has written an official response [7]

Ownership

The stock of FMO is held by individual, corporate and public Dutch entities as outlined in the table below:[8]


FMO Stock Ownership
RankName of OwnerPercentage Ownership
1Dutch Government51.00
2Large Dutch Banks42.00
3Dutch Employers' Association
4Dutch Trade Unions
5Individual Dutch Investors
Total100.00

See also

References

  1. ↑ "Financial performance". Annual Report FMO. FMO. Retrieved 27 July 2018.
  2. ↑ "Financial performance". Annual Report FMO. FMO. Retrieved 27 July 2018.
  3. ↑ "Corporate Factsheet" (PDF). Fmo.nl. Retrieved 9 November 2017.
  4. ↑ "Financial performance". Annual Report 2017. FMO. Retrieved 27 July 2018.
  5. ↑ "Coal power plant in Bargny, Senegal". Environmental Justice Atlas. Retrieved 23 April 2018.
  6. ↑ "FMO Independent Complaints Mechanism Panel report No. 2" (PDF). FMO.nl. ICM. Retrieved 27 July 2018.
  7. ↑ "FMO Management Response to the Independent Expert Panel's Compliance Review Report regarding the Complaint on the investment in Sendou 125 MW coal-fired power plant" (PDF). FMO.nl. FMO. Retrieved 27 July 2018.
  8. ↑ "Contact us". Alios-finance.com. Retrieved 9 November 2017.
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