Netherlands Development Finance Company FMO
Encyclopedia
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), which translates into Netherlands Development Finance Company, is a bilateral private-sector development bank
based in the Hague
, the Netherlands
.
s, employer's association, labor unions and private investors, to make investments in private sector
projects in developing countries and emerging markets
. In March 2008, FMO achieved bank status; the bank is officially under the supervision of the Dutch Central Bank (DNB). , FMO was present as a development finance partner in over eighty (80) different developing countries and emerging markets.
FMO invests risk capital in companies and financial institutions in developing countries. , FMO's investment portfolio totaled EUR:4.6 billion (about US$6.3 billion). That makes FMO one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO
has an AAA rating from Standard and Poor's.
FMO also manages funds for the Dutch government (Ministries of Foreign Affairs and Economic Affairs) to maximize the development impact of private sector investments. For instance, the Capacity Development Program provides funding with the aim to create access to management and technical know-how.
FMO collaborates with other International finance institutions. Currently, FMO has a risk-sharing agreement with the Asian Development Bank
(ADB), to promote trade finance in Asia. FMO also collaborates with individual financial institutions in emerging markets and developing countries, including LOLC Micro Credit Limited in Sri Lanka
.
{| style="font-size:100%;"
|-
| width="100%" align="center" | FMO Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Dutch Government||51.00
|-
|2||Large Dutch Banks ||
|-
|3||Dutch Employers' Association||
|-
|4||Dutch Trade Unions||
|-
|5||Individual Dutch Investors||
|-
| ||Total||100.00
|-
|}
Development bank
The phrase development bank may refer to:* Community development banks fund low-income areas in the United States* Multilateral Development Bank provide financing for international development...
based in the Hague
The Hague
The Hague is the capital city of the province of South Holland in the Netherlands. With a population of 500,000 inhabitants , it is the third largest city of the Netherlands, after Amsterdam and Rotterdam...
, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
.
History
It was created in 1970 by the Dutch Government, commercial bankCommercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s, employer's association, labor unions and private investors, to make investments in private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
projects in developing countries and emerging markets
Emerging markets
Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. Based on data from 2006, there are around 28 emerging markets in the world . The economies of China and India are considered to be the largest...
. In March 2008, FMO achieved bank status; the bank is officially under the supervision of the Dutch Central Bank (DNB). , FMO was present as a development finance partner in over eighty (80) different developing countries and emerging markets.
Overview
Although 51% of the shares is held by the Dutch government, FMO operates as a commercial company. Its mandate is to provide long term capital for projects in countries that commercial investors do not yet feel comfortable investing in. Furthermore, FMO has a strict policy on maximizing development impact: a methodology designed to make sure that FMO's return on investment is not just financial, but also has positive environmental and social aspects.FMO invests risk capital in companies and financial institutions in developing countries. , FMO's investment portfolio totaled EUR:4.6 billion (about US$6.3 billion). That makes FMO one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO
FMO
FMO has multiple meanings, including:* Fast Moving Object, a group of asteroids.* Fenna-Matthews-Olson complex, a water soluble chemical complex.* Field Marketing Organization, an entity that markets insurance and financial products....
has an AAA rating from Standard and Poor's.
FMO also manages funds for the Dutch government (Ministries of Foreign Affairs and Economic Affairs) to maximize the development impact of private sector investments. For instance, the Capacity Development Program provides funding with the aim to create access to management and technical know-how.
FMO collaborates with other International finance institutions. Currently, FMO has a risk-sharing agreement with the Asian Development Bank
Asian Development Bank
The Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...
(ADB), to promote trade finance in Asia. FMO also collaborates with individual financial institutions in emerging markets and developing countries, including LOLC Micro Credit Limited in Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
.
Ownership
The stock of FMO is held by individual, corporate and public Dutch entities as outlined in the table below:{| style="font-size:100%;"
|-
| width="100%" align="center" | FMO Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Dutch Government||51.00
|-
|2||Large Dutch Banks ||
|-
|3||Dutch Employers' Association||
|-
|4||Dutch Trade Unions||
|-
|5||Individual Dutch Investors||
|-
| ||Total||100.00
|-
|}
External links
See also
- List of banks in the Netherlands
- Dutch Central Bank
- Dutch Government