MICROCAPITAL BRIEF: FMO, Oikocredit Invest $27m in CNG Vehicle Financing Firm Acceso of Peru

The Dutch development bank, which is known by the acronym FMO, recently arranged a local-currency syndicated loan worth USD 27 million in favor of Edpyme Acceso Crediticio, a financier of personal and business vehicles in Peru. The funding, which includes the equivalent of USD 6 million from Dutch cooperative Oikocredit, is specifically earmarked for vehicles powered by compressed natural gas (CNG).

FMO’s manager of financial institutions for Latin America, Frouke Hoekstra, said Acceso “plays an important role in financial inclusion, as many of its clients do not have access to the traditional banking system. Our investment in Acceso’s CNG vehicles supports both our ambition to reduce inequality by providing access to finance and to take climate action with green finance.”

As of December 2018, Acceso had a loan portfolio of USD 206 million, of which 40 percent was for taxis.

Founded in 1975, Oikocredit is a cooperative that invests in microfinance, fair trade, agriculture and renewable energy. As of October 2018, Oikocredit has EUR 971 million (USD 1.1 billion) in capital invested in 693 firms in 70 countries, including 471 involved in financial inclusion. As of December 2018, these financial services providers served 36 million people, 84 percent of whom are women and half of whom live in rural areas.

Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private sector institutions. The bank works toward the UN’s sustainable development goals by placing debt and equity investments in sectors such as agribusiness, financial institutions, energy and capacity development. As of 2018, the bank reports a portfolio of EUR 9.6 billion (USD 10.8 billion).

Sources and Additional Resources

FMO press release
https://www.fmo.nl/news-detail/27ca5271-177f-4be2-906b-0050c57d6552/fmo-supports-reduction-of-air-pollution-in-lima-(peru)-with-cng-vehicle-financing-for-acceso

Acceso homepage
http://www.acceso.com.pe

Oikocredit homepage
https://www.oikocredit.coop

FMO 2018 Annual Report
https://annualreport.fmo.nl/2018/

FMO homepage
http://www.fmo.nl

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