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

Dutch pension insurer Zwitserleven, Dutch railway pension fund Spoorweg Pensioenfonds and Dutch public transport pension fund Pensioenfonds Openbaar Vervoer recently made the initial deposits to a Small and Medium Enterprise (SME) Finance Fund that has received a total of EUR 100 million (USD 134.5 million) for its first close from these and other undisclosed investors. The fund is co-sponsored by Netherlands-based institutional asset manager Samenwerkende Nederlandse Spaarbanken (SNS) Impact Investing and the Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO). The sizes of the initial deposits have not been disclosed.

The purpose of the new fund is to support the growth of SMEs in developing markets worldwide by directly capitalizing local banks and other financial institutions to provide loans to SMEs. According to SNS Impact Investing, these institutions will use the proceeds from the fund to provide loans in target sectors including retail, production, transportation, agribusiness, food processing and distribution.

The fund is administered by SNS Impact Investing, the development finance arm of SNS Asset Management, a Netherlands-based asset manager with EUR 45.9 billion (USD 60.5 billion) in assets under management (AUM) as of 2012. SNS Impact Investing has AUM of approximately USD 450 million as of 2010. 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).

By A’kos Szebeni, Research Associate

About Samenwerkende Nederlandse Spaarbanken (SNS) Impact Investing

Launched in 2011 and based in the Netherlands, Samenwerkende Nederlandse Spaarbanken (SNS) Impact Investing is the development finance arm of Dutch fund manager SNS Asset Management. As of 2010, the unit consists of a team of ten people headed by Harry Hummels, who serves as a board member of SNS AM, and Theo Brouwers, a director of SNS AM. Also as of 2010, SNS Impact Investing has assets under management of approximately USD 450 million.

About Samenwerkende Nederlandse Spaarbanken (SNS) Asset Management

Based in the Netherlands and founded in 1997, Samenwerkende Nederlandse Spaarbanken (SNS) Asset Management is the investment management unit of SNS REAAL, a retail banking and insurance provider serving individuals and businesses. SNS Asset Management and Developing World Markets, a US-based asset management company, founded SNS Institutional Microfinance Fund and SNS Institutional Microfinance Fund II, which aim to alleviate poverty by providing capital to microfinance institutions (MFIs) around the world. As of 2012, SNS Asset Management manages total assets of EUR 45.9 billion (USD 60.5 billion).

About Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (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:

SNS Impact Investing Press Release: “EURO 100 million for growth of SME’s in developing countries”, http://www.snsimpactinvesting.com/wp-content/uploads/2013/11/SNS-FMO-Fund-UK.pdf

MicroCapital story, January 14, 2014, “Sankalp Forum to Host “Africa Summit 2014” on Social Business, February 12 – 13, 2014, Nairobi, Kenya”, https://www.microcapital.org/microfinance-event-sankalp-forum-to-host-africa-summit-2014-on-social-business-february-12-13-2014-nairobi-kenya/

MicroCapital story, January 13, 2014, “Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Planning to Loan $10m to Bank Andara of Indonesia for On-lending to Microfinance Institutions (MFIs)”, https://www.microcapital.org/microcapital-brief-dutch-development-bank-nederlandse-financierings-maatschappijvoor-ontwikkelingslanden-fmo-planning-to-loan-10m-to-bank-andara-of-indonesia-for-on-lending-to-microfinance-institu/

MicroCapital story, January 10, 2014, “Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $6.8m to Nigeria’s Fortis Microfinance Bank For On-lending to Women” https://www.microcapital.org/microcapital-brief-dutch-development-bank-nederlandse-financierings-maatschappij-voor-ontwikkelingslanden-fmo-loans-6-8m-to-nigerias-fortis-microfinance-bank-for-on-lending-to-women/#more-26468

MicroCapital story, December 27, 2013, “European Bank for Reconstruction and Development (EBRD) May Loan $27m to Tunisie Leasing to Support On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-may-loan-27m-to-tunisie-leasing-to-support-on-lending-to-micro-small-medium-sized-enterprises-msmes-in-tunisia/

MicroCapital story, February 11, 2011, “SNS Asset Management of Netherlands Launches SNS Impact Investing with $400m Managed for Microfinance, Agriculture, Water”, https://www.microcapital.org/microcapital-brief-sns-asset-management-of-netherlands-launches-sns-impact-investing-with-400m-managed-for-microfinance-agriculture-water/

MicroCapital Universe Profile: SNS Impact Investing, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SNS+Impact+Investing

MicroCapital Universe Profile: SNS Asset Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SNS+Asset+Management

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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