MICROCAPITAL BRIEF: Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $9.5m to Nigeria’s Lift Above Poverty Organization (LAPO) for Microfinance

The Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) recently signed an agreement to provide a five-year, local-currency loan equivalent to EUR 7.5 million (USD 9.5 million) to Lift Above Poverty Organization (LAPO), a Nigerian microfinance institution (MFI). LAPO will use the proceeds to provide loans to micro- and small enterprises (MSEs) in Nigeria.

FMO is majority-owned by the Dutch government, with commercial banks, trade unions, employers’ associations and individual investors holding smaller stakes. In 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) as well as placing new investments valued at EUR 1.5 billion (USD 2 billion) during the year. As of June 2014, LAPO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 208 million, a gross loan portfolio of USD 176 million, return on assets (ROA) of 10.5 percent, return on equity (ROE) of 46.9 percent and approximately 721,000 borrowers. LAPO also reported USD 107 million in deposits from approximately 1.2 million depositors as of June, 2014.

By Tejas Jain, Research Associate

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 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) as well as placing new investments valued at EUR 1.5 billion (USD 2 billion) during the year.

About Lift Above Poverty Organization (LAPO)

Lift Above Poverty Organization (LAPO), established in 1987 in Nigeria, is a microfinance institution (MFI) that provides savings, investment and loan products intended to address the needs of low-income households. The majority of LAPO’s clients are engaged in micro-, small and medium-sized enterprise (MSME). As of June 2014, LAPO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 208 million, a gross loan portfolio of USD 176 million, return on assets (ROA) of 10.5 percent, return on equity (ROE) of 46.9 percent and approximately 721,000 borrowers. LAPO also reported USD 107 million in deposits from approximately 1.2 million depositors as of June, 2014.

Sources and Additional Resources:

FMO, FMO to Invest EUR 7.5 million in LAPO Microfinance Bank Limited

MicroCapital, September 19, 2014, Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $20m to Armenia’s Ameriabank

MicroCapital, April 4, 2014, Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $10m to Kyrgyz Investment and Credit Bank (KICB)

MicroCapital, January 29, 2014, Kompanion Financial Group of Kyrgyzstan Receives Syndicated Loan of $12m from European Bank for Reconstruction and Development (EBRD), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO)

MicroCapital, January 18, 2014, Zwitserleven, Spoorweg Pensioenfonds, Pensioenfonds Openbaar Vervoer Invest in $135m SME Finance Fund of Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO), Samenwerkende Nederlandse Spaarbanken (SNS) Impact Investing

MicroCapital, December 5, 2013, Agence Française de Développement (AFD), Lift Above Poverty Organization (LAPO) Commit $8.3m to Housing Microfinance Project, Lafarge Nigeria to Provide Technical Assistance

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

MicroCapital Universe Profile: Lift Above Poverty Organization (LAPO)

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