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19 May 2010
FMO and Standard Bank Group and FMO sign US$400m risk sharing facility
Standard Bank Group (SBG) and the Netherlands Development Finance Company (FMO) have signed a Risk Sharing Facility worth US$400-million. This facility, which allows the banks to provide additional financing to especially smaller and medium sized enterprises primarily in Africa as well as other emerging markets, can provide loans between US$7.5m and US$40m.
Participations under this agreement can be in USD, EUR or in local currencies. The tenor will range between 4 and 10 years.
"The signing of this risk sharing facility with Standard Bank Group marks the start of an intensified cooperation which we expect will provide numerous African SMEs with access to finance. SBG has an extensive network and origination capacity in several African countries and in turn FMO can bring additional financing with longer tenors which is currently not available in the commercial banking market", Jurgen Rigterink, FMO's Chief Investment Officer commented.
"The bank is delighted to have signed this risk share agreement with FMO as it will provide additional capacity for supporting SMEs and corporate growth stories in both Africa and other developing markets. In particular, the agreement will provide flexibility in both tenors and currency to match client development plans and business capabilities ", added Dipak Patel, Head of International Development Group at SBG.
About FMO
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of ? 4.6-billion, FMO is 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's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.
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