Question

How does BII’s strategic outlook compare with that of other comparable overseas institutions?

Answer FMO

  1. FMO is the Dutch Entrepreneurial Development Bank.
  2. FMO and BII are both European Bilateral Development Finance Institutions.
  3. FMO and BII have partnered on a number of occasions. Examples are investments in the same projects and Technical Assistance-related cooperation, such as Invest for Impact Nepal, along with the Swiss Agency for Development and Cooperation (SDC). BII and FMO have also engaged in staff exchanges which has increased mutual understanding. Experts at both institutions complement each other’s expertise and experience to allow a joint contribution towards development impact. In short, FMO finds in BII a partner institution with which it can join forces for impact. As such, BII is a highly valued stakeholder for FMO.
  4. FMO has a banking license and as such is a regulated entity. This means its metrics are not, one on one, comparable to BII’s. 
  5. Being a regulated bank with a AAA rating requires FMO to maintain strong capital buffers and allows for FMO’s continued access to the capital market at a reasonable rate, thus allowing FMO to provide additional services even in economic downturns and being able to stand by its clients. Confidence in FMO’s long-term viability also stems from a close relationship with the Dutch State. (Mobilization) partners need such confidence in order to be able to enter into long term partnerships with FMO, thus enabling impact at scale. 
  6. Where BII provides more equity (& quasi-equity) investments than debt investments, FMO provides more debt than equity (& quasi-equity) investments.
  7. FMO focuses on three SDGs: SDG 8 (decent work and economic growth), SDG 10 (reduced inequalities) and SDG 13 (climate action). These broadly align with the impact goals included in BII’s 2022 to 2026 strategy.
  8. FMO’s geographic focus differs from BII’s. BII’s exposure concentrates in Africa and South Asia. FMO has significant exposure in Sub-Saharan Africa, Asia, Latin America and the Carribbean (LAC) and Eastern Europe, Central Asia and the Middle East and Northern Africa (ECA/MENA).