The entrepreneurial development bank

Investing in emerging markets

Through 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-nance to local subsidiaries of Dutch companies or joint ventures with a Dutch partner, having a controlling interest. The nance amounts to max. EUR 5 million. The maturity can range from three to 12 years. A grace period is negotiable.

Depending on the specic nancing requirement, the FOM funding may be structured as a secured/ unsecured loan, a guarantee, a subordinated loan or as equity.

The costs of FOM-nance (interest and fees) are in line with market-conditions and based on the risk-prole of each individual case.

their activities. The companies would not otherwise qualify for commercial bank nancing. The activities will be the same as or at least resemble those of the Dutch sponsor. The Dutch sponsor will have

Conditions
FOM nances local subsidiaries and joint ventures in emerging markets with a need for medium to long-term nance for the start-up or expansion of

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 nancial performance but also in terms of their corporate governance and environmental and social policy and the lasting benets to the local economy.

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 fom@fmo.nl.

In assessing applications FMO evaluates the business plan of the Dutch parent company and of the rm 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 nance any investments under which Dutch companies wholly or largely relocate to emerging markets.

Other conditions depend on the company-specic information.

Countries
Countries that qualify for FOM nance 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.

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