MICROCAPITAL BRIEF: FMO Lends $52.5m to Climate Investor One for Hydro, Solar, Wind Energy Projects in Africa, Asia

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced it will loan USD 52.5 million in two transactions to Climate Investor One (CIO), a facility managed by Netherlands-based Climate Fund Managers. The objective of the loan is for CIO to aid in the development and construction of about 20 renewable energy projects, primarily new wind, solar and hydro projects in Africa and Asia.

CIO consists of three investment funds, each of which focuses on a different stage of a project’s lifecycle: the Development Fund, the Construction Equity Fund and the Refinancing Fund. CIO is mobilizing an estimated USD 2 billion for renewable energy projects in developing countries. Its goal is to prevent the release of 1.5 million tons of carbon dioxide per year.

Climate Fund Managers is a joint venture of FMO and Phoenix InfraWorks, an infrastructure firm based in South Africa.

Founded in 1970, FMO is 51-percent owned by the Dutch government. 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 9.0 billion).

By Phoebe Rorke, Research Associate

Sources and Additional Resources

FMO:
FMO Signs $2.5mln Deal with Cooperatief Climate Fund Managers UA

FMO Signs $50mln Deal with Climate Investor One

FMO Entrepreneurial Development Bank

Climate Fund Managers:
CIO

Phoenix InfraWorks:
Welcome to Phoenix InfraWorks

MicroCapital:
FMO Lending $3m to Philippines’ Microfinance Institution One Puhunan

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