NN-FMO Emerging Markets Loan Fund

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;

• Energy;

• 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 description

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.