MICROCAPITAL BRIEF: Netherlands Development Finance Company (FMO) Donates $211k to Incofin Investment Management of Belgium to Renew Capacity Development Facility

Incofin Investment Management, a Belgian fund management company, and the Netherlands Development Finance Company (FMO), a public-private development bank founded in 1970, recently signed the fourth capacity development agreement stemming from their partnership that was launched in 2008 to strengthen a total of 14 microfinance institutions (MFIs) worldwide. Between December 2012 and June 2014, the new agreement will direct approximately EUR 162,000 (USD 211,000) to “support five [as yet unnamed] MFIs all over the world in which either Incofin’s Rural Impulse Fund I or II has invested,” [1]. The Rural Impulse Funds (RIFs) invest in rural MFIs through loans, equity investments and guarantees.

The new funding will be used for efforts intended to assist MFIs in the following areas: human resources including training programs on risk management and leadership; financial reporting; management information systems; lending methodology; development of lower-risk products; loans for assets that reduce environmental impacts; internal auditing; and the “development of social performance management tools.”

FMO is a Dutch public-private partnership that aims to support financial institutions and governments through “loans, participations, guarantees and other investment promotion activities.” In 2011, FMO reported total assets of EUR 5.06 billion (USD 6.53 billion) and EUR 2.59 billion (USD 3.34 billion) in net loans.

Based in Antwerp, Belgium, Incofin develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.

By Sarah Benali, Research Associate

About The Netherlands Development Finance Company
Founded in 1970, the Netherlands Development Finance Company (FMO) is a public-private development bank that supports financial institutions and governments through “loans, participations, guarantees and other investment promotion activities.” Because it has access to government funds, it can take higher risks with its investments including offering long-term finance. It also specializes in local-currency finance. In 2011, FMO reported total assets of EUR 5.06 billion (USD 6.53 billion) and EUR 2.59 billion (USD 3.34 billion) in net loans.

About Incofin Investment Management (Incofin IM)
Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.

About Rural Impulse Funds (RIFs I and II)
The Incofin Rural Impulse Funds (RIF) were launched by Incofin Investment Management to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The two funds include Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns and villages. The funds invest primarily through loans, though they make equity investments and guarantees as well. As of October 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 25.7 million (USD 35.9 million) and a fund size of EUR 30 million (USD 38 million), while Rural Impulse Fund II has outstanding investments of EUR 33.1 million (USD 46.0 million) and a fund size of EUR 120 million (USD 173 million).

Sources and Additional Resources:

Incofin Press Release: “Incofin IM signs a new Capacity Development Agreement with FMO,” December 2012, https://www.incofin.com/en/news/incofin-im-signs-new-capacity-development-agreement-fmo?%20December%202012

MicroCapital.org story: “MICROCAPITAL BRIEF: Microfinance Fund Manager Incofin Receives $1.3m Equity Investment from Gimv of Belgium,” November 24, 2012, https://www.microcapital.org/microcapital-brief-microfinance-fund-manager-incofin-receives-1-3m-equity-investment-from-gimv-of-belgium/

MicroCapital.org story: “MICROCAPITAL BRIEF: India’s Ujjivan Raises $9m in Equity from International Finance Corporation (IFC), Netherlands Development Company (FMO),” October 1, 2012, https://www.microcapital.org/microcapital-brief-indias-ujjivan-raises-9m-in-equity-from-international-finance-corporation-ifc-netherlands-development-finance-company-fmo/

MicroCapital Universe Profile: The Netherlands Development Finance Company (FMO)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

MicroCapital Universe Profile: Incofin Investment Management (Incofin IM)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Funds+%28RIFs%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: