Sector focus

FMO specializes in providing the full range of financial services within four key sectors: Financial Institutions, Energy, Housing and Agribusiness, food & water. These interlinked sectors lay the foundation for FMO's lasting development impact. We also take on projects in other sectors where we expect a similar impact, partnering with banks or institutions that have substantial knowledge of these areas and can provide the necessary expertise. Agribusiness, food & water was introduced as a new key focus sector in 2011.

Financial and infrastructure sector projects are good for development and good for business: they often produce good development results, while simultaneously generating good returns for FMO. Projects in these sectors have knock-on benefits in terms of improving people's quality of life, creating jobs and providing the means for people to study and run businesses. For our clients, this sector-based structure delivers more specialized knowledge and greater efficiency. They know what they can expect from us, as our expertise relates directly to their business.

Over the recent years we also saw a shift in the global pattern of poverty, which is also having an impact on our regional project selection process. Twenty years ago more than 90% of the world's poor lived in low-income countries (LIC), as defined by the World Bank. Now, less than 30% of the poor live in so-called LIC countries. Many of these countries are becoming wealthier, changing the development landscape as they are increasingly able to address poverty with their own means. In the near future, we expect to see growth in private sector investment and private international foundations as well as tied aid from the former developing countries like China, India and Brazil. Some emerging market banks are now taking lead roles in world rankings. In Asia and Latin America in particular, liquidity is strong and competition among banks fierce.

FMO is responding to this shifting paradigm. We will in line with our mission, aim to stay additional to the market - sharing knowledge, taking on high-risk, high-development impact projects and placing sustainability at the fore. Each sector requires its own approach in doing so.

We are primarily active in Africa, Asia, Latin America & the Caribbean and Eastern Europe & Central Asia. Our Agribusiness clients are mainly based in Latin America and Eastern Europe, although we plan to expand further into Africa and Asia in the coming years. Our housing activities focus on Africa and Asia and we did a record number of energy deals in Africa in 2011. FMO's Financial Institutions portfolio is active in all regions.

New contracts per sector per region (€xmln)

2011

Financial institutions

Energy

Housing

Agribusiness, food & water

Diverse sectors

Total

Non investment funds

Investment funds

Africa

146

0

160

40

0

110

456

Asia

127

37

60

0

16

67

307

Latin America & the Caribbean

106

8

88

24

26

27

279

Eastern Europe & Central Asia

103

0

45

15

13

49

225

Non-region specific

12

20

0

0

0

7

39

Total

494

65

353

79

55

260

1,306

2010

Financial institutions

Energy

Housing

Agribusiness, food & water

Diverse sectors

Total

Non investment funds

Investment funds

Africa

85

56

32

44

1

63

281

Asia

74

39

1

53

21

88

276

Latin America & the Caribbean

108

13

71

18

52

24

286

Eastern Europe & Central Asia

74

15

0

11

14

17

131

Non-region specific

19

1

0

0

5

27

52

Total

360

124

104

126

93

219

1,026

Committed portfolio per sector per region (€xmln)

2011

Financial institutions

Energy

Housing

Agribusiness, food & water

Diverse sectors

Total

Non investment
funds

Investment funds

Africa

440

341

450

148

7

362

1,748

Asia

403

285

236

96

83

415

1,518

Latin America & the Caribbean

420

128

270

95

157

169

1,239

Eastern Europe & Central Asia

535

212

49

81

69

135

1,081

Non-region specific

86

137

12

0

14

39

288

Total

1,884

1,103

1,017

420

330

1,120

5,874

N.B. 2010 figures of sectors are in some cases adjusted for comparative analysis between the new sector segmentations.