Dolma Impact Fund II (FMO-58315)

Countries
  • Nepal
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
A
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
Dolma Impact Fund II
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • Finance
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 10.00 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 Jul 24, 2020

Disclosed by Bank Jul 21, 2020


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Project Description

According to the bank's website, "FMO's investment in Fund II will be from two government funds, MASSIF and Building Prospects. Objective of the investment is to continue supporting the first-time fund manager, Dolma, and assist the team in deploying capital towards impactful transactions that result in both economic and social impact."

"Fund II will invest in Nepal which is one of poorest 55 nations in the world and hence is classified as Least Developed Country ("LDC"). Supporting investments in LDCs is one of the core strategies of FMO and MASSIF. In addition, Dolma is one of the first private equity ("PE") fund managers focused on Nepal and has played a key role in developing the PE sector in the country. Fund II's strategy of investing in renewable energy in a country that has an energy deficit and investing in companies that need capital to grow alongside its economy (and hence simultaneously boosting it) touches another cornerstone of FMO's strategy."

Investment Description
  • Netherlands Development Finance Company (FMO)
Private Actors
  • Dolma Fund Management -- Fund Manager
  • Dolma Impact Fund II -- Implementing Company

According to FMO, Dolma Impact Fund II ("DIF II" of Fund II") is the follow-on fund of Dolma Impact Fund I, where FMO played an anchor investor role. DIF II has a strategy to provide scarce (growth) capital to small- and medium-sized enterprises (SMEs) in Nepal, in the healthcare, renewable energy, technology, and other sectors with high growth and impact potential. Fund II is established to generate private sector-led growth while creating positive social and environmental impact. The fund is managed by Dolma Fund Management ("Fund Manager" or "Dolma")

Contact Information

No contact information provided at time of disclosure.

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