PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Dutch development bank FMO shows solid results

FMO, the Dutch Development Finance Company, has seen the value of its total investment portfolio increase to EUR6.6bn in 2013 from EUR6.3bn in 2012, according to the company’s annual results.

The quality of the portfolio remains strong. A net profit of EUR133m (2012: EUR145m) will enable further investments and increase the development impact in developing countries.
 
FMO achieved record new commitments of more than EUR1.5bn during the year (2012: EUR1.4bn). Other highlights of 2013 included the launch of our first investment fund and the issue of its first public sustainability bond in the market, where it encountered strong investor demand.
 
FMO also maintained a strong level of profitability, although the quality of income was lower than 2012. Lower private equity exit results were compensated for by a release of the group specific provision as a result of a refinement in methodology and lower pension expenses. The quality of the loan and private equity portfolios remained fairly stable throughout the year. 
 
Nanno Kleiterp, chairman of FMO, says: “Our new strategy of becoming the leading impact investor, will increasingly become part of our day-to-day activities at FMO. But it is not about FMO itself: it is about finding ways to help clients who are agents of change. It is about supporting clients whose business strategies contribute to a sustainable world in 2050. Our clients create impact in three ways: inclusive development, green development and economic growth. Inclusive and green are terms used to describe enhanced access to finance, infrastructure and other resources and environmental sustainability.
 
“Going forward, we aim to maintain our profitability while also further increasing the money we catalyse from others. For every euro FMO invests we would like to attract the same amount in third-party funds by 2020, with at least half of these third-party funds from commercial investors.
 
“We are on an inspiring journey to show that impact and profit can coexist; that it is possible to set concrete impact targets, achieve them and report on them transparently. As in every journey, the destination is not reached in a day. Yet I know that the journey is worthwhile, and that we will manage to get there.
 
“We expect continued uncertainty, as well as volatile exchange rates in many of our markets. Emerging markets should continue to grow, but at slower rates than in recent years. We monitor all relevant developments closely. Our robust and well-diversified portfolio supported by an equally strong capital base, can withstand a potential market downturn.”

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured

Blackstone Private Equity