Mobilizing capital
Leveraging private sector funding, resources, and expertise to support development priorities and business growth
FMI is perhaps best known for its blended finance, credit facilitation, and investment promotion work, which has mobilized over $400 million dollars in fresh private sector capital to SMEs worldwide. This work reflects the fact that private investment flows to developing countries greatly exceed donor-funded assistance. FMI’s capital mobilization work aims to link global demand for investment opportunities with the development challenges faced by emerging market countries. FMI has created, revamped, and advised numerous credit and investment facilitation structures in diverse environments, in addition to working closely with conventional banks and microfinance institutions to improve the quality and availability of SME products. For these financial institution partners, FMI has conducted feasibility studies, drafted and implemented business plans, conducted financial analyses, raised capital, and drafted comprehensive operational policies and procedures. FMI has hands-on experience managing and advising grant and investment funds, and has provided asset allocation advice to governments and pension funds.
FEATURED WORK
Administering Emergency Loans in West Bank/Gaza
FMI used $2 million in proposed grant funds to establish an Emergency SME Loan Guarantee Program, which FMI administered through local banks. FMI held a competition for 18 banks and selected two that agreed to provide dollar-for-dollar matching funds in exchange for a partial loan guarantee. FMI leveraged donor and bank funding to disburse $4.7 million in loans to SMEs. Using a transactional guarantee approach, FMI assisted banks to reject unqualified loan applications, and ultimately helped the banks and USAID achieve a 100% repayment rate.
Establishing the Kosovo Credit Guarantee Fund
FMI designed, established, and operated the Kosovo Credit Guarantee Fund (KCGF), created as a locally-owned revolving credit facility that guarantees bank loan portfolios of SME loans. FMI secured and managed over $13 million in grant funding, which continues to serve as the backing capital for the KCGF. In its first year of operations under FMI management, the KCGF guaranteed over 200 new bank loans, mobilizing $16 million in capital. The KCGF is on track to create 5,000 private sector jobs and mobilize over $460 million in bank capital to SMEs by 2026.
Mobilizing Direct Investment in Bosnia-Herzegovina
FMI designed and operated the $2 million BiH Diaspora Marketplace grant fund, which was part of the USAID Diaspora Invest Activity. The fund incentivized direct diaspora investment through catalytic grants that leveraged private sector funding. FMI received 336 investment proposals from more than 20 countries, resulting in 78 grant awards. Over the five-year program, FMI grantees created 494 permanent jobs across BiH. FMI achieved a leverage ratio of 12:1, meaning that $1.6 million in program grants mobilized more than $19 million in new private sector investment.
