FMO has committed $30m in the senior capital tranche of Frontclear, a financial markets development company focused on catalyzing stable and inclusive interbank markets in emerging and developing countries. 

Huib-Jan de Ruijter, Director Financial Institutions of FMO, said: “The innovative proposition of Frontclear is stimulating capital markets development in the geographies we are active in.” 

“FMO is very pleased to be able to contribute to Frontclear’s mission of supporting economic development globally by catalysing the establishment of more stable and inclusive financial markets in emerging and frontier markets,” he said.

The Amsterdam based financial markets development company facilitates access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution’s counterparty credit risk. 

In addition to the provision of guarantees to enable bilateral over-the-counter transactions, Frontclear provides risk capital to financial infrastructure providers in emerging and frontier markets. 

Frontclear is funded by European governments and development finance institutions including BMZ, DFID, FSDA, EBRD, Proparco and TCX.

The investment by FMO represents a significant increase in the risk capital of Frontclear.

Philip Buyskes, CEO of Frontclear, said: “FMO is a leader in the global financial markets development agenda and the investment by FMO allows us to begin scaling our operations and deliver on our projected growth path of our financial guarantee portfolio.”

“We are thus very pleased to welcome FMO to Frontclear and look forward to building a long term partnership in the areas of capital market development of emerging and frontier economies,” he said.