THE CURRENCY EXCHANGE FUND N.V. (FMO-56155)

Countries
  • Netherlands
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Currency Exchange Fund NV
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Aug 14, 2019

Disclosed by Bank Aug 9, 2019


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Project Description

According to the Bank's website, this project will provide financing to the borrower in order to increase their capital base and support the growth of its portfolio of local currency solutions. 

Investment Description
  • Netherlands Development Finance Company (FMO)
Private Actors

The Currency Exchange Fund N.V. (‘TCX’) is a fund based in Amsterdam, The Netherlands. It was founded in 2007 by development finance institutions, specialized microfinance investment vehicles and donors to offer solutions to manage currency risk in developing and frontier markets. These solutions consist of derivatives which enable TCX’s investor to lend in local currency while shifting the currency risk to TCX. This protects borrowers from the risk resulting from currency volatility due to borrowing in hard currencies like USD, EUR, etc.

Contact Information

No contact information available at time of writing. 

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism