Final closing fund enables further growth for small and medium sized enterprises in emerging marketsOctober 1, 2015
Today, the ACTIAM FMO SME Finance Fund closes at over EUR 150 mln. With a new entry by Pensioenfonds Vervoer and an increase of commitments by two existing investors, Spoorwegpensioenfonds and Stichting Pensioenfonds Openbaar Vervoer, the fund will be able to support the growth of even more SME companies in emerging markets. The fund was established by ACTIAM Impact Investing and the Dutch development bank FMO in 2013. Since the launch of the fund, over EUR 103 mln in loans to 25 financial institutions in 18 countries have been provided. Through the fund, seven mainly Dutch institutional investors implement a sustainable investment strategy that is expected to offer an attractive financial return.
Jacques Kappé, Senior Portfolio Manager Fixed Income at SPF Beheer, adds: “we made an extra commitment because the fund lives up to our expectations since we first invested in 2013. The fund enables us to offer our clients Spoorwegpensioenfonds and Stichting Pensioenfonds Openbaar Vervoer a social return next to an economic return”.
Impact The fund provides loans to financial institutions servicing SME companies in emerging markets worldwide. Thanks to the fund, hundreds of SMEs can get access to long term finance that is hardly available in these markets. Recipients of the loans are entrepreneurs active in sectors like agribusiness, food processing and distribution, retailing, manufacturing and transportation.
The impact of the fund is twofold: on the one hand the growth of SME companies creates jobs, on the other hand the soft and hard requirements that ACTIAM and FMO have with respect to environmental, social and governance aspects make local banks and their SME clients work in a socially responsible manner and enable them to further improve their practices. Hence, the fund contributes to a more professional and sustainable financial sector and business practice in emerging markets.
ACTIAM is a Netherlands based asset manager with a particular focus on sustainable investments. Ultimo 2014, ACTIAM has over EUR 51 billion assets under management. ACTIAM N.V. is the responsible asset and fund manager in the Netherlands; its assets under management are worth € 51 billion (at 30 June 2015). With its sustainable performance, services and advice, ACTIAM helps its clients to achieve their investment goals. ACTIAM firmly believes that financial return and social return on investment can go hand in hand. Corporate social responsibility has permeated deeply into ACTIAM’s business processes and practices. ACTIAM N.V. manages investment institutions as referred to in the Dutch Financial Supervision Act. ACTIAM N.V. has its registered office in Utrecht, the Netherlands, its principal place of business is located at Croeselaan 1 in Utrecht (3521 BJ) and it is registered with the Chamber of Commerce under number 30143634. The Netherlands Authority for the Financial Markets (AFM) has licensed ACTIAM N.V. to manage investment institutions and ACTIAM is listed in the AFM Register. For more information, see www.actiam.nl.
With its Impact Investing department, ACTIAM operates a department that is dedicated to the development, promotion and distribution of investment funds that, in addition to generating a market-based return for investors, aim to generate positive social and environmental impact in developing and emerging economies.
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
FMO Investment Management provides institutional investors access to FMO’s deal flow in sustainable emerging market investments. FMO Investment Management BV is an AFM licensed investment firm and a wholly owned subsidiary of FMO NV.