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€4.6bn Dutch development bank FMO signs up to UN PRI

The latest development bank to sign up

Dutch development bank the FMO has signed up to the United Nations-backed Principles for Responsible Investment, according to the PRI web site.
The FMO – Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (Netherlands Development Finance Company) – is 51% owned by the Dutch state and has an investment portfolio of €4.6bn, making it one of the largest bilateral development banks in the world.
FMO’s joining is the latest boost to the $25trn initiative as it introduces mandatory fees for members and embarks on a drive to extend across asset class under new chairman Wolfgang Engshuber.
The FMO is following in the footsteps of the World Bank’s $50bn private sector finance arm the International Finance Corporation, which became the first multilateral development bank to sign up to the UNPRI last month. The initiative now has 884 members.Among development banks, the UK’s CDC group (formerly the Commonwealth Development Corporation) is a signatory, but other major European national development groups such as the Norwegian Investment Fund for Developing Countries and Swedfund International in Sweden are not.
The FMO, based in The Hague, was created in 1970 by the Dutch Government, commercial banks and social partners to invest in private sector projects in developing countries and emerging markets.
It is already signed up to the UN Environment Programme Finance Initiative (UNEPFI) and the Equator Principles.
The FMO says it is conscious of the potential impact of environmental, social and governance (ESG) factors for clients “during every step in every process”.
Earlier this month the FMO announced it had invested $4.4m in Seattle-based microfinance firm Global Partnerships’ $25m Social Investment Fund.