FOM_Productsheet_English
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The entrepreneurial development bank
Investing in
emerging marketsThrough the medium and long term facilities of the Emerging Markets Fund (FOM),
the Netherlands Development Finance Company (FMO) encourages Dutch companies to
invest in emerging markets (including all the development countries). The fund is a joint
initiative of FMO and the Netherlands Ministry of Economic Affairs.
Financing
FMO provides medium to long-term FOM-finance to
local subsidiaries of Dutch companies or joint
ventures with a Dutch partner, having a controlling
interest. The finance amounts to max. EUR 5 million.
The maturity can range from three to 12 years.
A grace period is negotiable.
Depending on the specific financing requirement,
the FOM funding may be structured as a secured/
unsecured loan, a guarantee, a subordinated loan
or as equity.
The costs of FOM-finance (interest and fees) are
in line with market-conditions and based on the
risk-profile of each individual case.
Conditions
FOM finances local subsidiaries and joint ventures
in emerging markets with a need for medium to
long-term finance for the start-up or expansion of
their activities. The companies would not otherwise
qualify for commercial bank financing. The activities
will be the same as or at least resemble those of
the Dutch sponsor. The Dutch sponsor will have
a controlling interest and will itself also invest
risk capital in the subsidiary or joint venture; in
addition FMO requires certain guarantees from the
Dutch company. Both the Dutch company and the
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Investing in emerging markets
subsidiary or joint venture in the emerging market
must comply with normal banking criteria. In order
to guarantee the sustainability of the investment,
FMO assesses the businesses not only in terms
of their financial performance but also in terms
of their corporate governance and environmental
and social policy and the lasting benefits to the
local economy.
In assessing applications FMO evaluates the
business plan of the Dutch parent company and
of the firm in the emerging market, as well as the
strategic interest of the Dutch parent company in
the investment to be funded.
FOM funding will contribute towards the continuity
and/or strengthening of the Dutch parent company.
FOM does not finance any investments under
which Dutch companies wholly or largely relocate
to emerging markets.
Other conditions depend on the company-specific
information.
Countries
Countries that qualify for FOM finance are all the
countries on the World Bank members list with
the exception of the high-income countries and the
EU member states, but including the Netherlands
Antilles and Aruba.
Contact
More information on FOM may be found in the FOM
brochure on the FMO website (www.fmo.nl) under
publications. Dutch companies with investment
plans in emerging markets may contact FMO directly
for individual advice: tel.: +31 (0)70 314 95 52 or
e-mail [email protected].
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