Letter from the MB of the Fund Manager

Dear reader,

Without a doubt, 2020 has been one of the most challenging years for FMO and its customers. Amid the economic and social fall-out of the pandemic, the state funds under management by FMO played an important role in ensuring that our customers could stay afloat. We look back with moderate satisfaction on our ability to deploy all tools at our disposal to keep the pipelines on track.

In 2021, substantial challenges and uncertainties remain. The pandemic aggravates existing challenges related to climate change, the deepening inequality-crisis and macro-economic precariousness. The public funds and facilities under management by FMO will continue to play their countercyclical role, generate impact on the ground and contribute to the creation of markets in which private finance can flow to those areas where it is most needed.

The DFCD Land Use Facility reflects positively on 2020 despite the unexpected COVID-19 crisis. Two transactions were contracted this year representing a total contracted amount of USD 12.5 mln, with a two other project in the final stages of contracting. COVID restrictions has meant, that we had to look for creative solutions to the restrictions the COVID-19 crisis imposed.

In addition to virtual due diligence options, the team enhanced collaboration with the local offices of the DFCD’s Origination Facility partners. At the same time, the team-initiated climate relevant projects with existing FMO customers, many of which were facing increased difficulty of attracting finance in the current economic environment.

We thank all our stakeholders for their continuous support, including our customers and investors, the Dutch Ministries of Finance and Foreign Affairs, the NGOs that help us to improve and our colleagues for giving their best every day.

The Hague, 29 April 2021

On behalf of the Management Board

Linda Broekhuizen, Chief Executive Officer, a.i.
Fatoumata Bouaré, Chief Risk and Finance Officer
Huib-Jan de Ruijter, Chief Investment Officer, a.i.