SDG Loan Fund S.C.A SICAV-SIF (FMO-62975)

Regions
  • World
Geographic location 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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 10, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SDG Loan Fund S.C.A SICAV-SIF
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Finance
  • Water and Sanitation
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 111.11 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,111.11 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Mar 15, 2024

Disclosed by Bank Dec 11, 2023

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the Fund builds on a growing range of efforts to mobilize capital from private sector investors for investments in emerging and frontier markets towards the Sustainable Development Goals (SDGs). Overall, capital deployed by the Fund will focus on economic growth (SDG 8), reduced inequality (SDG 10) and climate action (SDG 13). The Fund capital will be invested as participations in FMO-originated loans across all of FMO's sectors: Agribusiness, Food & Water, Energy, and Financial Institutions. Once fully invested in approximately 100 loan participations, the Fund aims for its investments to support close to 60,000 jobs and to avoid approximately 450,000 tCO2eq of greenhouse gasses per annum according to FMO's historical experience and analysis.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Fund is labelled as C since the fund participates in FMO loans and therefore will follow FMO’s guidelines & procedures. E&S risks will be covered and addressed under each individual FMO loan by FMO.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The capital structure is as following:
- Class A (Preference Shares) - USD 1 billion (Institutional investors), including anchor investment from Allianz SE
- Class B (Ordinary Shares) - USD 111 million first loss (FMO), wrapped with a USD 25 million unfunded guarantee from MacArthur Foundation

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The SDG Loan Fund (hereafter the Fund) aims to increase institutional investor exposure to SDG-aligned investment opportunities, while delivering appropriate risk-adjusted returns. The Fund will invest in a portfolio of FMO-originated loans, thereby granting senior investors access to FMO’s investment pipeline. Investors in the Fund, including Allianz, FMO and Skandia, are providing capital. Allianz Global Investors is managing the SDG Loan Fund and FMO Investment Management will manage the loan portfolio. The MacArthur Foundation has committed an unfunded guarantee for credit enhancement.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Allianz Investor -
- - - - Skandia Investor -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

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

How it works

How it works