Dutch development bank has good semi-annual results
THE HAGUE, TUESDAY 18 AUGUST 2015
- EUR 862 million in new investments (HY 2015)
- EUR 8.8 billion total committed portfolio (HY 2015)
- EUR 98 million net profit (HY 2015)
- Issuance of second Sustainability Bond for a total of EUR 500 million
- Launch of NN-FMO Emerging Markets Loans Fund
FMO (the Dutch Development Finance Company) published its 2015 semi-annual results today. The total committed investment portfolio increased to EUR 8.8 billion (HY 2014: EUR 6.9 billion). New commitments amounted to EUR 862 million (HY 2014: EUR 850 million), of which EUR 216 million was mobilized through third parties. A net profit of EUR 98 million (HY 2014: EUR 66 million) will enable further green and inclusive investments and increase jobs supported and created in developing countries
Nanno Kleiterp, FMO's CEO, commented: "FMO was able to achieve good results in the first half of 2015, which show once again that impact investing works. Our ability to realize true impact as well as generate healthy financial results through our investments, will lead to increased investment opportunities going forward.
Supported by favorable US dollar-euro exchange rate developments, net interest income increased by EUR 33 million to EUR 112 million. Total net profit came in at EUR 98 million, representing an increase of EUR 32 million compared to HY 2014.
FMO has realized a net profit in all its segments, of which the segment Financial Institutions has contributed a significant amount. Our capital position increased further to EUR 2.4 billion with an increase in the reported BIS-ratio to 22.1%.
In April FMO successfully issued a second Sustainability Bond, with a maturity of 7-years and a total amount of EUR 500 million. The proceeds of the Sustainability Bond support the financing of Green and Inclusive projects according to FMO's Sustainability Bonds framework.
In May, FMO launched the NN-FMO Emerging Markets Loans Fund in cooperation with NN Investment Partners. This fund takes advantage of FMO's expertise and underwriting skills. Through participation in the fund, institutional investors are offered the opportunity to invest in emerging markets corporate loans, an attractive asset class that traditionally has a high entry barrier.
Looking forward to the remainder of 2015, our outlook is neutral with numerous challenges ahead such as geopolitics, social tensions and the volatility of financial markets with repercussions for the stability of the US Dollar-Euro exchange rate. Other challenges such as a further slowdown of China could also impact FMO's markets, and thus its investments. As always, global and local developments will be monitored closely, and reacted upon if deemed necessary."