Notes to the EC annual accounts

1. Financial guarantee contract - receivable leg

The following table represents the movement related to the unearned guarantee fee receivable.

	Unearned guarantee fee receivable
Balance at October 18, 2024	-
Addition of new contract	3,819
Guarantee fee payment accrued	-3
Unwind of time value of money	39
Balance at December 31, 2024	3,855

Below the calculation of the accrued guarantee fee;

EC fee calculation¹	2024
A. ANNUAL AVERAGE OF FMO OUTSTANDING LOAN²	6,107,587.50
B. EFSD+ COVERED PERCENTAGE (Clause 6.2.b)	43.75%
C. APPLICABLE GUARANTEE FEE (225 bps*75% policy discount Clause 6.2.c)	0.5625%
D. Number of days in a full year (365), and (ii)the actual number of days in that Guarantee Fee Accrual Period
Clause 6.2.d) multiplied by the lower of : (i) 365; and (ii)the actual number of days in that Guarantee Fee Accrual Period	75/365

GUARANTEE FEE PAYABLE (ABC*D)	3,088.44

1 The amounts in the table are not rounded.

2 Calculation adjusted for the initial period from the 18th of October until the 31st of December. For the upcoming periods, the fee calculation will be based on the average of the outstanding principal amounts as of 1st of January of the reporting year and the end of the period.

2. Receivables from implementing partners

	2024
Receivables from implementing partner	3
Balance at December 31	3

3. Financial guarantee liability

The following table represents the movement related to the financial guarantee liability.

	Financial guarantee liability
Balance at October 18, 2024	-
Addition of new contract	19,940
Amortisation	-307
Reclass from FGC to impairment	-
Balance at December 31, 2024 - FGC payable leg	19,633

FMO considers the EC’s ECL to be 0 due to an LGD value of 0. This is because first losses are absorbed by the buffer which now stands at €101.9m. The EC’s LGD considers that, in an event of default, the outstanding exposures (so EAD) would need to exceed the buffer amount for the LGD applied to the EC to be greater than 0. FMO does not reasonably expect any scenario in which the loan will exceed this threshold over the 1-year estimation horizon. Thus, the LGD becomes 0 resulting in a final ECL of €0.

4. Amortisation of the financial guarantee liability

	2024
Amortisation of financial guarantee liability	-307
Total Amortization of the financial guarantee liability	-307

5. Off-Balance Sheet information

	2024
Contingent liabilities
Contingent liabilities on signed amounts	105,000
Contingent liabilities on disbursed amounts	-

Contractual commitments - Guarantee ceiling	105,000

As long as the total amount of the loan disbursed is below the FMO first loss position (the higher of the buffer and €30.0m), there is no EU risk on disbursed amounts.

6. EC list of operations

As set out in the Guarantee Agreement, the Commission agrees to provide under the EFSD+ a guarantee to FMO to cover up to a maximum of €105,000,000 as a second loss tranche of FMO's exposure under a €240,000,000 internal interest-bearing term loan facility made by FMO to its fund called 'Land Use Facility of the Dutch Fund for Climate and Development'. In addition, a first loss piece ("FLP") of at least €30,000,000 is provided by FMO either via FMO's own resources or via the pre-existing buffer funded by the Ministry as per subsidy decision of 23 May 2019.

The following table represents the outstanding loan amount.

	2024
Outstanding covered FMO loan¹	6,107,588

1 This actual not rounded outstanding Loan in FMO NV to the Land Use Facilty as per 31/12/2024. The outstanding amount is translated from USD into EUR as per inclusion rate (0.9219).

FMO manages the buffer – its value as at December 31, 2024 is set at €101,911,696 and at the end of the Programme it is to exceed the minimum FLP (EUR 30,000,000), which will represent the FLP amount covering the losses before the EFSD+ guarantee covers them as a second loss piece which is capped at a maximum of €105,000,000. The third loss piece is covered by FMO.

Below table represents the details of the buffer, the size disclosed is determined based upon 2024 financial statements of Land Use Facility and the Water Facility Fund? These figures have been prepared and are dated 31 December 2024 and include estimates regarding the valuation.

Details of the Buffer
Total of the Buffer	101,911,696
Subtotal per Part:	34,019,974		67,891,722
Buffer (Land Part)		Buffer (Water Part)
Unutilised amount of Grant Decision Dutch Fund for Climate and Development activity number 4000002735 from the "Land Use Facility:	-	Unutilised amount of Grant Decision Dutch Fund for Climate and Development activity number 4000002735 from the "Water Facility:	11,995,502
Amount of liquidity:	1,939,828	Amount of liquidity:	12,768,310
Investments		Investments
Buen Manejo del Campo S.A. de CV	2,842,463	Chiang Rai	1,506,574
Komaza Forestry Limited	257,080	Uttaradit	1,929,483
Miro Forestry Development Limited	4,474,826	Spectainer	909,694
NMB Bank Limited	9,819,413	DADP/CA Water	3,812,590
South Asia Foods LLC-FZ	3,194,138	Damen	1,374,883
Stichting Andgreen Fund	4,862,563	Sabaki	464,038
TOI Commodities SA	6,629,663	Bio2Watt	12,449,492
Total buffer Land Use Facility	34,019,974	Xylo Uganda	620,758
		Waste Transformers	590,739
		OFC Ecuador	17,704,480
		Other Fair Value Equity	1,765,179
		Total buffer Water Facility	67,891,722

(All amounts stated in above table are in € x 1)

Below tables represent the underlying loans from the Land Use Facility Fund eligible to the new DCFD Aya EU guarantee.

EC list of underlying operations
Signed and effective	Country	Focus	Committed not disbursed	Disbursed	Total commitment
Dvara Kshetriya Gramin Financial Services Private Limited	India	Clean Energy and Climate, Sustainable Finance and Biodiversity	1,932,367.15	4,830,917.87	6,763,285.02
Camimex Joint Stock Company	Vietnam	Climate resilient, Low-carbon circular economy	4,830,917.88	9,661,835.74	14,492,753.62
Helios Clear	Africa	TEI and GG	9,215,999.05	238,589.36	9,454,588.41
Miro Forestry	Africa	Competetive forestry plantations and biomass sustainably	431,331.96	603,864.73	1,035,196.69
Total			16,410,616.04	15,335,207.70	31,745,823.74

Signed and not yet effective	Country	Focus	Committed not disbursed	Disbursed	Total commitment
Total			-	-	-
Total signed			16,410,616.04	15,335,207.70	31,745,823.74

(All amounts stated in above table are in € x 1)

Calculation Guarantee
Underlying Investments	Committed amount 31/12/2024	Disbursed 31/12/2024	ECL 31/12/2024
Helios CLEAR Fund SCSp	9,454,588	238,589	-207,247
Camimex Joint Stock Company	14,492,754	9,661,836	-162,685
Dvara Kshetriya Gramin Financial Services Private Limited	6,763,285	4,830,918	-54,222
Miro Forestry Developments Limited	1,035,197	603,865	-72,464
Total	31,745,824	15,335,208	-496,618

(All amounts stated in above table are in € x 1)

7. Analysis of financial instruments by measurement basis

The accounting policies summary describes how financial instruments are measured, and fair value gains and losses, are recognized. The following table gives a breakdown of the carrying amounts of the financial instruments by category as defined by balance sheet heading.

At December 31	Carrying amount	Fair value
Financial assets
Financial guarantee contract - receivable leg	3,855	3,855
Receivables from implementing partners	3	3
Financial liabilities
Financial guarantee contract - payable leg	19,633	19,633

8. Subsequent events

There have been no significant subsequent events between the balance sheet date and the date of approval of these accounts which should be reported by the Program and have effect on financial figures as per December 31, 2024.