Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) reportedly has approved a five-year loan of EUR 5 million (USD 6.8 million) to Fortis Microfinance Bank, a Nigerian private-sector bank. According to a statement attributed to Kunle Oketikun, the managing director of Fortis, 80 percent of the funds will be designated to a microcredit program focused on female empowerment that will provide loans of NGN 30,000 (USD 189) to NGN 250,000 (USD 1,575) per individual [1]. In addition to the loans, the bank will provide training in money management. It has not been specified how the remaining 20 percent of the funds will be appropriated.
Fortis was founded in 2007 and has 14 branches in Nigeria. As of 2012, it reports a gross loan portfolio of NGN 10.5 billion (USD 65.5 million), return on assets of 11 percent and return on equity of 24 percent. FMO is a Dutch development bank owned by the Dutch government, commercial banks, trade unions, employers’ associations and individual investors [2]. In 2012, FMO reported total assets of EUR 5.6 billion (USD 7.3 billion).
By Meraj Husain, Research Associate
About Fortis Microfinance Bank
Headquartered in Abuja, Nigeria, Fortis Microfinance Bank began operating in 2007 and has 14 branches in the country. It offers financial services to both businesses and individuals and is listed on the Nigerian Stock Exchange. Its subsidiary, Fortis Mobile Money, offers clients mobile payment services. As of 2012, it reports a gross loan portfolio of NGN 10.5 billion (USD 65.5 million), return on assets of 11 percent, return on equity of 24 percent and USD 40.2 million in deposits.
About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. In 2012, FMO reported total assets of EUR 5.6 billion (USD 7.3 billion).
Sources and Additional Resources
[1] Business Day: “Dutch bank approved N1 billion loan grant for Fortis MFB,” http://businessdayonline.com/2013/12/dutch-bank-approves-n1-billion-loan-grant-for-fortis-mfb/
[2] FMO: “Financials,” http://www.fmo.nl/financials
FMO News Archive, “FMO Provides a EUR 5 Million Debt Facility to Fortis Microfinance Bank in Nigeria,” http://www.fmo.nl/k/n114/news/view/13999/179/fmo-provides-a-eur-5-million-debt-facility-to-fortis-microfinance-bank-plc-in-nigeria.html
MicroCapital, November 28, 2013, “Netherlands Development Finance Company (FMO) Issues $675m in Bonds to Fund Inclusive, Renewable Energy, Agriculture, Other Projects,” https://www.microcapital.org/microcapital-brief-netherlands-development-finance-company-fmo-issues-675m-in-bonds-to-fund-inclusive-finance-renewable-energy-agriculture-other-projects/
MicroCapital, July 19, 2012, “Nigerian Stock Exchange Lists Fortis Microfinance Bank with Market Capitalization of $50m,” https://www.microcapital.org/microcapital-brief-nigerian-stock-exchange-lists-fortis-microfinance-bank-with-market-capitalization-of-50m/
MicroCapital Universe Profile: Fortis Microfinance Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fortis+Microfinance+Bank
MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29
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