Development banks FMO and BIO join forces in infrastructure sector

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Earlier this week FMO (the Netherlands Development Finance Company) and BIO (Belgian Investment Company for Developing Countries) signed a Risk Sharing Agreement to start cooperating and jointly finance infrastructure transactions. BIO, a relatively young development finance institution, wishes to expand its business into the financing of infrastructure transactions in developing countries. FMO has extensive experience in that sector, amongst others via its Infrastructure Development Fund, which was recently renewed with an additional EUR 70 million from the Dutch government. BIO has allocated an initial amount of EUR 45 mln to infrastructure transactions that will be financed through this cooperation, FMO allocates a similar amount.

By actively participating in transactions financed by FMO, BIO will be able to increase its experience and portfolio in this sector. “BIO has been mandated by the Belgian Government to finance the development of a competitive and dynamic private sector to contribute to sustainable economic growth in emerging countries. Recently the Belgian government has allocated new funds to BIO with the instruction to invest in larger infrastructure projects. Hence, this cooperation agreement will enable us to meet this requirement within very short terms, as BIO will benefit from FMO’s sound experience and substantial pipeline in this field,” said Hugo Bosmans, CEO of BIO at the signing.

FMO CIO Jurgen Rigterink stated at the signing: “FMO is delighted to see this partnership come to fruition.The cooperation matches our ambition to further enhance our infrastructure capabilities in low income countries as well as our aim to catalyze funds from third parties.” Among the first joint transactions FMO and BIO are considering to finance, are a geothermal power plant in Nicaragua and a methane gas power plant in Rwanda.