NN-FMO Emerging Markets Loan Fund
Last updated 11 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50)
FMO Emerging Markets Loan Fund makes investments in agribusiness, energy, financial institutions, agribusiness and renewable energy that reduce the emission of greenhouse gases, create jobs, and provide clean energy in emerging market countries globally.
The investment strategy of the fund is to build a diversified portfolio of loans in Emerging Markets (EM) by co-investing in new loans arranged by FMO – the Dutch development bank - with a [long-term] buy-and-hold philosophy. The fund will invest in four sectors in which FMO has ample experience:
• Financial Institutions;
• Agribusiness, food and water
The fund will co-invest in senior loans with FMO to ensure a strong alignment of interests between the investors in the fund and FMO. The fund will include loans in USD and EUR only. The loans will have fixed maturity dates and mostly will have floating rate interest and amortizing repayment profiles.
The fund will follow FMO’s impact reporting based on the following indicators: jobs supported,green house gas emissions avoided, number of SME’s reached, number of small holders reached, power production and number of people connected to electricity.
Financial return: This is aimed to be achieved through thorough asset selection in combination with solid risk management, underpinned by the regulated bank status of FMO. FMO’s representative loan portfolio shows an average annual gross return of 6.15% (period 2009 – 2014). This fund enables its participants to diversify their fixed income portfolio by creating exposure to a new type of borrowers in relevant sectors in a large variety of emerging economies.
of track record
the year funded
Key performance indicators
Asset manager: FMO
Product track record: Fund has 6 years of track record
Target IRR: 5%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Luxembourg
Product status: Open - no committed capital
Inception year: 2017
Vintage year: 2017
Target region: Africa, Eastern Africa, Emerging countries
Target close date: 01/04/2017
Product term: 15 year
Assets under management: 500,000,000 USD (US Dollar)
Investment size: Min: 5,000,000; Max: 10,000,000; Avg: 7,500,000
Co-investment policy: Only with LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 1%
Carried interest: n.a.
Hurdle rate: 0%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Endowments/Foundations, Pension Funds, Other Institutional Investors
Phone number: +31 70 314 97 92
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Business Development Manager
The fund will follow FMO's impact reporting on outcomes such as jobs supported, greenhouse gas emissions avoided number of SME’s reached, number of small holders reached, power production and number of people connected to electricity. Together with a consultant FMO has developed an impact model which measures both direct and indirect effects of its financing. The results will be audited and integrated in the FMO annual report.