FMO (Netherlands)

Last updated
FMO
Native name
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Company type State owned company
IndustryDevelopment Finance
FoundedJuly 8, 1970 (1970-07-08)
Headquarters The Hague, Netherlands
ProductsEquity financing, loans, trade finance, credit guarantees
RevenueAftertax: € 297 million (US$ 308 million) (2024) Increase2.svg [1]
Total assets € 11.10 billion (US$ 11.50 billion) (2024) [2]
Number of employees
866 (2024) [3]
Website www.fmo.nl

FMO (Dutch : Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.) is a Dutch development bank structured as a bilateral private-sector international financial institution based in the Hague, the Netherlands. Among others, FMO manages funds for the Ministries of Foreign Affairs and Economic Affairs of the Dutch government to maximize the development impact of private sector investments. It is licensed as a bank and supervised by the Dutch Central Bank.

Contents

The Dutch government holds 51% of the shares, but FMO operates as a commercial company. Due to its relationship with the Dutch government, it is able to take risks which commercial financiers are not able or not prepared to take. FMO holds a triple A rating from Standard and Poor's and Fitch Ratings. As of December 2024, the bank's total asset valuation was €11.10 billion (US$12.3 billion), and its shareholders' equity was €3.45 billion (US$3.82 billion). [4]

FMO's mandate is to provide long term capital for projects in countries in which commercial investors do not yet dare to invest. It invests risk capital in companies and financial institutions in developing countries and has a strict policy on maximizing development impact with a methodology designed to make sure that FMO's return on investment is not just financial but also has positive environmental and social effects. [5] Since 2017, FMO has strategically focused on three core sectors: Energy, Financial Institutions, and Agribusiness, Food and Water. [6] FMO also makes investments by using government funds, examples are: Dutch Fund for Climate and Development, [7] NASIRA Program, [8] and Building Prospects. [9] The funds amount to €76.9 million (US$ 79.6 million), €10.8 million (US$11.2 million) and €9.6 million (US$9.911 million) respectively in 2024. [10] Currently FMO has 771 ongoing investments in more than 85 different countries. [11]

History

FMO was founded in 1970 by the Dutch Government in conjunction with commercial banks, the national employers' association, labor unions, and private investors to invest in private sector projects in developing countries and emerging markets. [12] In March 2008, FMO achieved bank status; the bank has been under the supervision of the Dutch Central Bank (DNB) since then. [13]

Objectives

FMO manages funds for the Ministries of Foreign Affairs and Economic Affairs of the Dutch government to maximize the development impact of private sector investments in emerging markets. For instance, the Capacity Development Program provides funding with the aim to create access to management and technical know-how.

Controversial investments

In 2009 the FMO invested in a coal power plant near Bargny in Senegal, called Sendou I. The project triggered a debate about the impact on the environmental circumstances of the inhabitants. [14] [15] Following this, the Independent Complaints Mechanism of FMO has undertaken a Compliance Review and a Mediation process, [16] in reaction to which the Management Board of FMO has written an official response [17]

Ownership

The stock of FMO is held by individual, corporate and public Dutch entities as outlined in the table below: [18] [19]

FMO Stock Ownership 2025
RankName of OwnerPercentage Ownership
1 Dutch Government 51.00
2Large Dutch Banks42.00
3Dutch Employers' Association, Dutch Trade Unions, and Individual investors7.00
Total100.00


See also

References

  1. ↑ "Financial performance" (PDF). Annual Report FMO. FMO. Retrieved 6 November 2024.
  2. ↑ "Financial performance" (PDF). Annual Report FMO. FMO. Retrieved 6 November 2024.
  3. ↑ "Financial performance" (PDF). Annual Report FMO. FMO. Retrieved 6 November 2024.
  4. ↑ "Financial performance" (PDF). Annual Report 2024. FMO. Retrieved 6 November 2025.
  5. ↑ "NETHERLANDS DEVELOPMENT FINANCE COMPANY (FMO)". UNEP Finance Initiative.
  6. ↑ "NETHERLANDS DEVELOPMENT FINANCE COMPANY (FMO) – Sector Expertise".
  7. ↑ "Dutch fund for Climate and Development – FMO". FMO. Retrieved 18 December 2025.
  8. ↑ "NASIRA Program – FMO". FMO. Retrieved 6 November 2025.
  9. ↑ "Building Prospects – FMO". FMO. Retrieved 6 November 2025.
  10. ↑ "Financial performance" (PDF). Annual Report 2024. FMO. Retrieved 6 November 2025.
  11. ↑ "World Map - FMO". World Map - FMO. FMO. Retrieved 18 December 2025.
  12. ↑ "FMO Company Profile". FMO. FMO. Retrieved 6 November 2025.
  13. ↑ "FMO S&P Rating – September 2008" (PDF). FMO. FMO. September 2008. Retrieved 6 November 2025.
  14. ↑ "Coal power plant in Bargny, Senegal". Environmental Justice Atlas . Retrieved 23 April 2018.
  15. ↑ "AfDB authorises thorough investigations on Sendou Coal Fired power plant". African Review. April 24, 2017.
  16. ↑ "FMO Independent Complaints Mechanism Panel report No. 2" (PDF). FMO.nl. ICM. Retrieved 27 July 2018.
  17. ↑ "FMO Management Response to the Independent Expert Panel's Compliance Review Report regarding the Complaint on the investment in Sendou 125 MW coal-fired power plant" (PDF). FMO.nl. FMO. Retrieved 27 July 2018.
  18. ↑ "Shareholders – FMO". FMO. FMO. Retrieved 6 November 2025.
  19. ↑ "Evaluatie aandeelhouderschap FMO". Open Overheid. Ministerie van Financiën. June 2025. Retrieved 6 November 2025.
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