Dutch impact investor FMO committed a total of $33.3 million in July to businesses that operate in Asia’s developing economies that are expected to be hit hard by the pandemic, according to its latest transaction overview.
The commitment was part of the more than $300 million that the impact investor allocated to companies globally as part of its business continuity program in the wake of the COVID-19 pandemic.
“It is precisely now, during these times of crisis, that is it important to continue to invest in developing economies that are expected to be hit hard by the pandemic,” the firm said.
In July, FMO committed $20 million to North Haven India Infrastructure Fund (NHIIF), an Indian private equity fund managed by Morgan Stanley Investment Management.
The fund focuses on investments mostly in private companies building the physical and societal infrastructure required to enable large groups of population in India to benefit from economic efficiencies and improved services and social welfare.
FMO also co-invested $2.3 million in Mandarin Overseas Robotics Enterprise, one of the largest automotive parts manufacturers in Indonesia.
The investment, which is a top-up to the original investment made last year, aims to support Mandarin Overseas during the pandemic and ensure a smooth transition through the crisis, FMO said.
In Myanmar, the Dutch development bank provided a $6 million loan to existing client Maha Agriculture Public Company and a $5 million loan to Proximity, a microfinance company that is active mainly in the Irrawaddy delta areas in the country.
The loan to Maha Agriculture allows the MFI, which serves more than 40,000 clients, to continue providing financial services to farmers in Myanmar’s rural areas. FMO’s loan to proximity, meanwhile, helps ensure continued support to the livelihoods of the firm’s borrowers.
The Myanmar government has taken measures to control and limit the risk of spreading the coronavirus and ordered a lockdown over April, resulting in the complete closure of all economic activities, followed by physical restrictions hampering operations until 15 May.
“While local governments are working hard to minimize the impact on their people and economies, we are needed now more than ever. Hence, we continue to empower entrepreneurs in developing economies to build a better world and boost resilience to withstand the pandemic,” FMO said in its latest transaction overview.