Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, is lending USD 6.4 million to C-Quest Capital, a US-based investor in projects that reduce the environmental impacts of energy production and usage in low- and middle-income countries. At the same time, Bix Capital, a Dutch provider of debt financing to small and medium-sized enterprises (SMEs) to boost access to cleaner cookstoves and water purification systems in Africa, is issuing a loan of USD 3.6 million to C-Quest. The transactions will enable wider usage of clean cooking stoves in various regions of Sub-Saharan Africa. The FMO funding is from its Access to Energy Fund, a joint project with the Dutch government to invest equity and debt in sustainable energy efforts in developing economies.
C-Quest’s three main lines of work are energy-efficient lighting, less-polluting cooking, and biomass and solar energy. The firm operates in 13 countries in Africa and Asia.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN’s Sustainable Development Goals by funding capacity development and placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. FMO’s total investment volume was EUR 1.9 billion (USD 2.1 billion) during 2021 bringing its total committed portfolio to EUR 12.5 billion (USD 13.6 billion).
By Hasnat Aslam, Research Associate
Sources and Additional Resources
FMO transaction listing for March 2022
https://www.fmo.nl/news-detail/2f96d8bf-c261-43e0-a97f-ba851e288430/monthly-transaction-overview-march
C-Quest homepage
https://www.cquestcapital.com/
Bix Capital
https://www.bixcapital.nl/
FMO homepage
https://www.fmo.nl/
FMO Access to Energy Fund description
https://www.fmo.nl/aef
FMO annual report 2021
https://annualreport.fmo.nl/2021/annual-report-2021/at-a-glance/2021-performance
Previous MicroCapital article on FMO
https://www.microcapital.org/microcapital-brief-fmo-lends-5-7m-to-finelle-of-groupe-cofina-to-support-women-led-msmes-in-agriculture-sector-of-cote-divoire/
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