Notes to the financial statements

1. Current account with FMO (asset)

	2025	2024
Current account with FMO (asset)	4,647	6,039
Balance at December 31 ¹	4,647	6,039

1 The comparative financial information 2024 as included in the financial statements 2025 includes both the financial information of MASSIF and Market Creation Platform. The financial information 2025 only reflects the financial information 2025 of MASSIF. As the revised presentation is not considered to be a material prior year error, the financial information 2024 has not been revised compared to the financial statements 2024. The amount of 2024 consisted of 5,324 for MASSIF and 715 for Market Creation Platform.

The amount relates to balance of the bank account maintained by FMO on behalf of the Fund. This balance was previously recognized and presented as 'Cash balances with banks', however, it has been reclassified to 'Current account with FMO' in the current year to ensure fair presentation. The current account can freely be disposed of.

2. Short-term deposits

Short-term deposits are liquid accounts and are subject to an insignificant risk of changes in fair value. The Fund has on demand full access to the carrying amounts. Short-term deposits consist of money market funds, which are measured at FVPL. Short-term deposits have a maturity of less than three months.

	2025	2024
Money market funds	126,488	58,340
Balance at December 31	126,488	58,340

3. Loan portfolio

Loans originated by the Fund include loans to the private sector in developing countries for the account and risk of the Fund.

	Loans measured at AC	Loans measured at FVPL	Total 2025
Balance at January 1	121,338	19,977	141,315
Disbursements	45,623	953	46,576
Loan Consolidation	-46	-	-46
Repayments	-54,525	-446	-54,971
Write-offs / disposed	-21,999	-912	-22,911
Changes in amortizable fees	-241	-	-241
Changes in fair value	-	2,007	2,007
Changes in accrued income	752	-19	733
Exchange rate differences	-15,119	-1,954	-17,073
Balance at December 31	75,783	19,606	95,389
Movement in impairment	24,380	-	24,380
Total balance at December 31	100,163	19,606	119,769

	Loans measured at AC	Loans measured at FVPL	Total 2024
Balance at January 1	117,166	21,415	138,581
Disbursements	75,051	3,252	78,303
Loan Consolidation	-75	-	-75
Repayments	-43,311	-6,674	-49,985
Write-offs / disposed	-3,736	-913	-4,649
Changes in amortizable fees	-156	-	-156
Changes in fair value	-	2,079	2,079
Changes in accrued income	341	-358	-17
Exchange rate differences	6,808	1,176	7,984
Balance at December 31	152,088	19,977	172,065
Impairment	-30,750	-	-30,750
Total balance at December 31	121,338	19,977	141,315

The following table summarizes the loans segmented by sector:

	2025
Loans segmented by sector	Stage 1	Stage 2	Stage 3	Fair value	Total
Financial Institutions	77,350	13,876	5,918	11,525	108,669
Energy	-	-	-	-	-
Agribusiness	3,019	-	-	8,081	11,100
Net balance at December 31	80,369	13,876	5,918	19,606	119,769

	2024
Loans segmented by sector	Stage 1	Stage 2	Stage 3	Fair value	Total
Financial Institutions	74,800	19,253	19,867	12,324	126,244
Energy	-	-	-	-	-
Agribusiness	7,418	-	-	7,653	15,071
Net balance at December 31	82,218	19,253	19,867	19,977	141,315

	2025
Loans segmented by geographical area	Stage 1	Stage 2	Stage 3	Fair value	Total
Africa	11,360	4,759	3,790	10,269	30,178
Asia	15,799	9,117	2,128	6,084	33,128
Latin America & the Caribbean	19,272	-	-	-	19,272
Europe & Central Asia	15,303	-	-	-	15,303
Non - region specific	18,635	-	-	3,253	21,888
Net balance at December 31	80,369	13,876	5,918	19,606	119,769

	2024
Loans segmented by geographical area	Stage 1	Stage 2	Stage 3	Fair value	Total
Africa	31,302	2,503	12,658	10,457	56,920
Asia	12,909	975	7,209	6,875	27,968
Latin America & the Caribbean	8,416	15,775		-	24,191
Europe & Central Asia	10,471	-	-	-	10,471
Non - region specific	19,120	-	-	2,645	21,765
Net balance at December 31	82,218	19,253	19,867	19,977	141,315


				2025	2024
Gross amount of loans to companies in which FMO has equity investments				-	-
Gross amount of subordinated loans				13,472	13,137

For definition and more details on non-performing loans, we refer to section 'Credit Risk' within the Risk Management paragraph.

The movements in the gross carrying amounts and ECL allowances for the loans at AC are as follows:

Changes in loans to the private sector at AC in 2025	Stage 1		Stage 2		Stage 3		Total
	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance
At Januari 1, 2025	83,300	-1,082	19,660	-407	49,128	-29,261	152,088	-30,750
Additions	45,707	-680	-	-	-84	-	45,623	-680
Exposures derecognised or matured / lapsed (excluding write-offs and modifications)	-37,686	25	-3,818	24	-13,023	22,342	-54,527	22,391
Transfers to Stage 1	-	-323	-	323	-	-	-	-
Transfers to Stage 2	-	449	-	-449	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Modifications of financial assets (including derecognition)	1,851	-	-	-	-1,897	-	-46	-
Changes in risk profile not related to transfers	-	964	-	125	-	-20,197	-	-19,108
Amounts written off	-345	-	-1,515	-	-20,139	20,139	-21,999	20,139
Changes in amortizable fees	-241	-	-	-	-	-	-241	-
Changes in accrued income	273	-	1	-	478	-	752	-
Foreign exchange adjustments	-11,989	145	-84	17	-3,044	1,476	-15,117	1,638
At December 31, 2025	80,870	-502	14,244	-367	11,419	-5,501	106,533	-6,370

Changes in loans to the private sector at AC in 2024	Stage 1		Stage 2		Stage 3		Total
	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance
At Januari 1, 2024	52,314	-800	7,346	-652	57,506	-37,021	117,166	-38,473
Additions	74,963	-1,220	-	-159	87		75,050	-1,379
Exposures derecognised or matured / lapsed (excluding write-offs and modifications)	-33,438	598	-1,383	9	-8,491	4,757	-43,312	5,364
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-1,954	21	1,954	-21	-	-	-	-
Transfers to Stage 3	-	-	-3,081	250	3,081	-250	-	-
Modifications of financial assets (including derecognition)	-13,623	-	13,548	-	-	-	-75	-
Changes in risk profile not related to transfers	-	388	-	182	-	98	-	668
Amounts written off	-	-			-3,736	3,736	-3,736	3,736
Changes in amortizable fees	-114	-	-109	-	67	-	-156	-
Changes in accrued income	1,155	-	186	-	-909	-	432	-
Foreign exchange adjustments	3,997	-69	1,199	-16	1,523	-581	6,719	-666
At December 31, 2024	83,300	-1,082	19,660	-407	49,128	-29,261	152,088	-30,750

Total impairments on loans in the profit and loss account
	2025	2024
Additions	680	-1,379
Exposure derecognised or matured/lapsed (excluding write - offs)	-22,391	5,364
Changes in risk profile (including changes in accounting estimates)	19,108	-1,433
Other	4,804	2,107
Balance at December 31	2,201	4,659

4. Impairment charges on financial assets and loan commitments

Impairment charges on financial assets and loan commitments are calculated for Banks, Loans at private sector at AC (including off balance loan commitments) and Guarantees Given to customers. The movement in impairment charges on financial assets and loan commitments for each of these items is presented in the table below.

Impairment charges on financial assets and loan commitments	2025	2024
Loans	2,201	4,659
Loan commitments	-68	114
Guarantees issued	-1,225	-215
Total impairments	908	4,558

The following table shows the values of the IMF GDP forecasts used in each of the economic scenarios for the ECL calculations for 2024 and 2025. The upside and downside scenario calculations are derived from the base case scenario, adjusted based on an indicator of public debt to GDP in emerging markets.

The macroeconomic scenarios’ model was updated following the publication of the new macroeconomic outlook data by the International Monetary Fund (IMF) in 2025. The updates of the model based on more optimistic GDP forecast, caused new point-in-time adjustments to probability of defaults in the impairment model, leading to a release in combined stage-1 and stage-2 impairment charge.

IMF GDP % Growth Forecasts	2025	2026
Guatemala	4.1%	3.8%
Georgia	6.0%	5.0%
Ethiopia	6.6%	7.1%
Madagascar	3.9%	4.2%
Myanmar	1.9%	2.1%
Zimbabwe	6.0%	4.6%
India	6.2%	6.3%
Uganda	6.1%	7.6%
Nicaragua	3.2%	3.1%
Indonesia	4.7%	4.7%

1 IMF had no forecasts of GDP growth rates available for the Palestine Territories.

Note that macroeconomic scenarios have been updated by using the latest available information by the IMF, as published in October 2025.

December 31, 2025	Total unweighted amount per ECL scenario	Loans to the private sector	Guarantees
ECL scenario:
PD rating 1 notch up (PD)	-442	-426	-16
Prepayment rate decrease 50% (EAD)	26	26	1
Credit conversion rate increase 20% (EAD)	46	40	6

Base case	6,936	6,657	279

PD rating 1 notch down (PD)	506	486	20
Prepayment rate increase 50% (EAD)	-25	-25	-1
Credit conversion rate decrease 20% (EAD)	-46	-40	-6

December 31, 2024	Total unweighted amount per ECL scenario	Loans to the private sector	Guarantees
ECL scenario:
PD rating 1 notch up (PD)	-619	-596	-23
Prepayment rate decrease 50% (EAD)	27	25	1
Credit conversion rate increase 20% (EAD)	32	26	6

Base case	33,618	32,978	640

PD rating 1 notch down (PD)	1,063	1,030	33
Prepayment rate increase 50% (EAD)	-27	-24	-1
Credit conversion rate decrease 20% (EAD)	-32	-26	-6

5. Equity investments

The equity investments in developing countries are for the Fund's account and risk. The movements in fair value of the equity investments are summarized in the following table. Equity investments are measured at FVPL.

Equity measured at FVPL	2025	2024
Balance at January 1	205,909	219,269
Purchases and contributions	14,851	26,828
Return of Capital	-60,283	-15,631
Changes in fair value	-14,692	-24,363
Net results from sales	4,083	-195
Balance at December 31	149,868	205,908

The following table summarizes the equity investments segmented by sector:

	2025	2024
Financial Institutions	59,989	102,923
Energy	1,191	2,005
Agribusiness	3,677	3,614
Multi-Sector Fund Investments	75,104	85,932
Infrastructure, Manufacturing and Services	9,907	11,434
Balance at December 31	149,868	205,908

6. Investments in associates

The movements in net book value of the associates are summarized in the following table:

	2025	2024
Net balance at January 1	8,789	10,463
Purchases and contributions	-	-
Share in net results	-595	-2,309
Exchange rate differences	-1,440	635
Balance at December 31	6,754	8,789

Investments in associates are valued based on the equity accounting method.

The following table summarizes the associates segmented by sector.

	2025	2024
Financial Institutions	6,754	8,789
Net balance at December 31	6,754	8,789

The following table summarizes the share in the total assets, liabilities, total income and total net profit/loss of the associates

Associate	Carrying amount	Economic ownership %	Total assets	Total liabilities	Total profit/loss
Teak Tree Investments	3,469	40%	3,469	-	-
SFC Finance Limited	3,345	30%	30,153	13,780	579

7. Other financial assets

	2025	2024
Other financial assets at FV ¹	18,234	21,875
Balance at December 31	18,234	21,875

1 Other financial assets at FV relate to FMO's Ventures Program

8. Other receivables

	2025	2024
Accrued income guarantee fee	201	-
Receivables related to equity disposals and dividends	5,356	646
Fee receivables	193	145
Balance at December 31	5,750	791

9. Current accounts (liabilities)

	2025	2024
Current account FMO	770	694
Balance at December 31¹	770	694

1 The comparative financial information 2024 as included in the financial statements 2025 includes both the financial information of MASSIF and Market Creation Platform. The financial information 2025 only reflects the financial information 2025 of MASSIF. As the revised presentation is not considered to be a material prior year error, the financial information 2024 has not been revised compared to the financial statements 2024. The amount of 2024 consisted of 336 for MASSIF and 358 for Market Creation Platform.

10. Accrued and other liabilities

	2025	2024
Bank suspense account	22	136
Amortized costs related to guarantees	36	49
Accrued costs capacity development	6,174	9,852
Balance at December 31 ¹	6,232	10,037

1 The comparative financial information 2024 as included in the financial statements 2025 includes both the financial information of MASSIF and Market Creation Platform. The financial information 2025 only reflects the financial information 2025 of MASSIF. As the revised presentation is not considered to be a material prior year error, the financial information 2024 has not been revised compared to the financial statements 2024. The amount of accrued costs capacity development in 2024 consisted of 7,038 for MASSIF and 2,950 for Market Creation Platform.

11. Provisions

	2025	2024
Allowance for loan commitments	194	127
Allowance for guarantees	1,551	640
Balance at December 31	1,745	767

12. Contributed fund capital and reserves

	2025	2024
Contributed Fund Capital	352,840	352,840
Initial contribution FMO	7,778	7,778
Contribution DGIS current year ¹	20,000	2,000
Balance at December 31	380,618	362,618

1 The comparative financial information 2024 as included in the financial statements 2025 includes both the financial information of MASSIF and Market Creation Platform. The financial information 2025 only reflects the financial information 2025 of MASSIF. As the revised presentation is not considered to be a material prior year error, the financial information 2024 has not been revised compared to the financial statements 2024. The amount of contribution DGIS current year in 2024 consisted of 2,000 for Market Creation Platform.

The fund capital is revolvable (100% revolvability) when the current value of assets is equivalent or above the sum of the capital put into the fund by shareholders.

	2025	2024
Other reserves	68,697	68,697
Balance at December 31	68,697	68,697

Undistributed results	2025	2024
Balance at January 1	3,433	22,327
Net profit / (loss)	-30,453	-23,487
Balance at December 31	-27,020	-1,160

13. Net interest income

	2025	2024
Interest income related to banks	99	150
Interest income from financial instruments measured at AC	9,335	8,110
Total interest income calculated using the effective interest method	9,434	8,260
Interest on loans measured at FVPL	1,370	1,500
Interest on short-term deposits	2,037	4,030
Other interest income	3,407	5,530
Net interest income	12,841	13,790

14. Net fee and commission income

	2025	2024
Administration fees	56	67
Guarantee fees related to unfunded risk participants	210	153
Other fees (arrangement, cancellation and waiver fees)	45	40
Net fee and commission income	311	260

15. Dividend income

Dividend income relates to income from equity investments.

	2025	2024
Dividend income direct investments	900	1,001
Dividend income fund investments	614	190
Total dividend income	1,514	1,191

16. Results from equity investments

	2025	2024
Results from equity investments
Unrealized results from FV movements	415	-33,554
Unrealized results from FX movements	-15,108	9,191
Results from Fair value re-measurements	-14,693	-24,363

Results from sales
Realized results	15,703	-13,212
Release unrealized results	-11,620	13,017
Net results from sales	4,083	-195
Total results from equity investments	-10,610	-24,558

The net result on sales represents the reversal of accumulated previously recognized unrealized fair value movements on the instruments sold and the actual realized result on sale of the instrument compared to the initial cost of the investment. Unrealized results from FX differences on non-monetary financial assets (investments in equity instruments) are a component of the change in their entire fair value. This amount is calculated using a spot-spot revaluation of the outstanding FV carrying amount on a daily basis and is presented separately.

17. Results from financial transactions

	2025	2024
Results on sales and valuations of FVPL loans	807	1,165
Foreign exchange results	-17,988	9,312
Results on Ventures Program	-5,217	-5,638
Total results from financial transactions	-22,398	4,839

18. Other operating income

	2025	2024
Other operating income	579	9
Total other operating income	579	9

19. Expenses

	2025	2024
Remuneration FMO	-10,093	-10,775
Capacity development expenses	-2,580	-8,610
Evaluation expenses	-144	-497
Other operating expenses	-186	-1,385
Total operating expenses¹	-13,003	-21,267

1 The comparative financial information 2024 as included in the financial statements 2025 includes both the financial information of MASSIF and Market Creation Platform. The financial information 2025 only reflects the financial information 2025 of MASSIF. As the revised presentation is not considered to be a material prior year error, the financial information 2024 has not been revised compared to the financial statements 2024. The amount of total operating expenses in 2024 consisted of 16,707 for MASSIF and 4,558 for Market Creation Platform.

Remuneration FMO relates to management fees paid to FMO.

Capacity development expenses relate to contracted contributions to beneficiaries in terms of the fund's objectives.
Evaluation costs relate to expenses made during frequent investigations and controls of existing investments and costs related to due diligence of new projects.

20. Off-Balance Sheet information

To meet the financial needs of borrowers, the Fund enters into various irrevocable commitments (loan commitments, equity commitments and guarantee commitments) and contingent liabilities. These contingent liabilities consist of financial guarantees, which commit the Fund to make payments on behalf of the borrowers in case the borrower fails to fulfill payment obligations. Though these obligations are not recognized on the balance sheet, they do obtain Credit Risk similar to loans to private sector. Therefore, provisions are calculated for financial guarantees and loan commitments according to ECL measurement methodology.

The outstanding amount for financial guarantees issued by the Fund is as follows:

	2025	2024

Contingent liabilities
Effective guarantees issued	8,018	5,552
Total guarantees issued	8,018	5,552

As agreed with the Dutch Ministry of Foreign Affairs, the fund shall maintain 1 euro for each euro of guarantee issued. The total amount of cash as per 31 December 2025 is adequately covering the total guarantees issued and hence meets the requirement set out by the Dutch Ministry of Foreign Affairs.

Nominal amounts for irrevocable facilities are as follows:

	2025	2024

Irrevocable facilities
Contractual commitments for disbursements of:
- Loans	30,018	19,430
- Equity investments and associates	46,715	53,535
Contractual commitments for financial guarantees given	584	4,793
Total irrevocable facilities	77,317	77,758

The movement in exposure for the financial guarantees issued (including contractual commitments) and ECL allowance is as follows:

Movement financial guarantees in 2025	Stage 1		Stage 2		Stage 3		Total
	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance
At January 1, 2025	9,175	-40	235	-18	935	-582	10,345	-640
Additions	14,420	-36	4,097	-32	1,817	-18	20,334	-86
Exposures matured (excluding write-offs)	-15,908	34	-2,290	-159	-2,073	-	-20,271	-125
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	-	-	-	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Changes to models and inputs used for ECL calculations	-	-178	-	-539	-	8	-	-709
Foreign exchange adjustments	-1,423	4	-209	2	-175	3	-1,807	9
At December 31, 2025	6,264	-216	1,833	-746	504	-589	8,601	-1,551

Movement financial guarantees in 2024	Stage 1		Stage 2		Stage 3		Total
	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance
At January 1, 2024	4,339	-19	581	-21	633	-367	5,553	-407
Additions	7,323	-34	28	-3	-	-	7,351	-37
Exposures matured (excluding write-offs)	-2,167	3	-426	22	-251	105	-2,844	130
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	-	-	-	-	-	-	-
Transfers to Stage 3	-398	3	-	-	398	-3	-	-
Changes to models and inputs used for ECL calculations	-	3	-	-13	-	-297	-	-307
Foreign exchange adjustments	78	4	52	-3	155	-20	285	-19
At December 31, 2024	9,175	-40	235	-18	935	-582	10,345	-640

The movement in exposure for the loan commitments is as follows:

Movement of loan commitments in 2025	Stage 1		Stage 2		Stage 3		Total
	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance
At January 1, 2025	14,408	-127	-	-	-	-	14,408	-127
Additions	65,295	-357	3,513	-65	-	-	68,808	-422
Exposures derecognised or matured (excluding write-offs)	-57,105	351	-	-	-	-	-57,105	351
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	-	-	-	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Changes to models and inputs used for ECL calculations	-	3	-	-	-	-	-	3
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	-213	2	90	-1	-	-	-123	1
At December 31, 2025	22,385	-128	3,603	-66	-	-	25,988	-194

Movement of loan commitments in 2024	Stage 1		Stage 2		Stage 3		Total
	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance
At January 1, 2024	25,316	-232	-	-	-	-	25,316	-232
Additions	100,118	-429	-	-112	-	-	100,118	-541
Exposures derecognised or matured (excluding write-offs)	-111,991	587	-	110	-	-	-111,991	697
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	-	-	-	-	-	-	-
Transfers to Stage 3	-	-	-	-	-		-	-
Changes to models and inputs used for ECL calculations	-	-44	-	1	-		-	-43
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	965	-9	-	1	-	-	965	-8
At December 31, 2024	14,408	-127	-	-	-	-	14,408	-127

21. Analysis of financial assets and liabilities by measurement basis

The significant accounting policies summary describes how the classes of financial instruments are measured and how income and expenses, including fair value gains and losses, are recognized. The following table gives a breakdown of the carrying amounts of the financial assets and financial liabilities by category as defined in under IFRS 9 and by balance sheet heading.

December 31, 2025	FVPL - mandatory	Amortized cost	Total
Financial assets measured at fair value
Short-term deposits	126,488	-	126,488
Loans to the private sector	19,606	-	19,606
Equity investments	149,868	-	149,868
Other financial assets at FV	6,754	-	6,754
Total	302,716	-	302,716
Financial assets not measured at fair value
Current account with FMO (asset)	-	4,647	4,647
Loans to the private sector	-	100,163	100,163
Other receivables	-	5,750	5,750
Total	-	110,560	110,560
Financial liabilities not measured at fair value
Current account with FMO (liability)	-	770	770
Accrued and other liabilities	-	6,232	6,232
Provisions	-	1,745	1,745
Total	-	7,977	7,977

December 31, 2024	FVPL - mandatory	Amortized cost	Total
Financial assets measured at fair value
Short-term deposits	58,340	-	58,340
Loans to the private sector	19,977	-	19,977
Equity investments	205,908	-	205,908
Other financial assets at FV	21,875	-	21,875
Total	306,100	-	306,100
Financial assets not measured at fair value
Current account with FMO (asset)	-	6,039	6,039
Loans to the private sector		121,338	121,338
Other receivables	-	791	791
Accrued income	-	43	43
Total	-	128,211	128,211
Financial liabilities not measured at fair value
Current account with FMO (liability)	-	694	694
Accrued and other liabilities	-	10,037	10,037
Provisions	-	767	767
Total	-	11,498	11,498

Fair value of financial assets and liabilities

Fair value hierarchy

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on lowest level input that is significant to the fair value measurement as a whole, as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

Level 3 – Valuation technique for which the lowest level input that is significant to the fair value measurement is unobservable.

Valuation processes

For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, FMO uses the valuation processes to decide its valuation policies and procedures and analyze changes in fair value measurement from period to period.

FMO’s fair value methodology and governance over its methods includes a number of controls and other procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. The responsibility of ongoing measurement resides with the relevant departments. Once submitted, fair value estimates are also reviewed and challenged by the Financial Risk Committee (FRC). The FRC approves the fair values measured including the valuation techniques and other significant input parameters used.

Valuation technique

When available, the fair value of an instrument is measured by using the quoted price in an active market for that instrument (level 1). A market is regarded as active if transactions of the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, valuation techniques are used that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. These valuation techniques applied by FMO to determine the fair value of its financial instruments are described below.

Financial instruments measured at fair value

Debt Instruments

TYPE OF LOANS	VALUATION METHODOLOGY
Fixed rate loans at FVTPL(Level 3)	Performing fixed‑rate loans are valued using a discounted cash flow (DCF) approach, where contractual cash flows— including any performance‑related additional cash flows—are discounted using a curve built from a risk‑free base curve (Reuters zero‑curve) and an individual credit spread reflecting client‑specific credit quality.
Floating rate loans at FVTPL(Level 3)	Floating‑rate loans are valued using a method that approximates an amortised‑cost–based approach, because changes in risk‑free rates are neutralised at each interest reset. Fair value is defined as gross outstanding minus the change in lifetime expected credit losses (LECL) between current and initial ratings, reflecting credit‑spread‑driven market value changes. Embedded options, if any, are priced separately and added to the loan’s value.
Debt funds at FVTPL (Level 3)	The Net Asset Value from investee's financial statements and investor reports prepared by fund manager
Non‑performing Fixed/ floating loans at FVTPL, debt funds at FVTPL (Level 3)	Non‑performing loans are valued at gross outstanding minus a specific impairment, reflecting the best estimate of recoverable value. The valuation incorporates all relevant qualitative and quantitative factors, including restructuring prospects, collateral realisation, or firm offers, and follows the standard Investment Review Committee impairment process used for amortised‑cost loans.
Loans with MarginAdjustments (Level 3)	Loans containing EBITDA-, ROAE- or profit‑linked margin features require additional inputs beyond standard fixed or floating loan valuation. Forward‑looking financial forecasts must be considered to determine whether additional margin components (e.g., interest step‑ups) are expected to apply. These expected adjustments are reflected in the cash flow schedule and discounted. For loans without outstanding balances, the value of the margin adjustment is set to zero.
Loans at FVPL with OtherFeatures (Level 3)	Some loans are designated at FVPL due to unique or complex contractual features that do not fit the standard valuation models. Where none of the prescribed fair value methodologies apply, these loans are valued at amortised cost plus impairment, effectively approximating nominal value unless material differences exist.

Derivatives

FMO uses internal valuation models to value derivative financial instruments. Valuation inputs include valuation curves provided by specialized price-makers for emerging markets currencies. Consequently, derivatives involving emerging market currencies are classified as level 2.

Equity Investments

Equity investments are measured at fair value when a quoted market price in an active market is available or when fair value can be estimated reliably by using a valuation technique. The main part of the fair value measurement related to equity investments (level 3) is based on net asset values of investment funds as reported by the fund manager and are based on advanced valuation methods and practices. When available, these fund managers value the underlying investments based on quoted prices, if not, multiples are applied as input for the valuation. For the valuation process of the equity investments we further refer to the accounting policies and related notes within these financial statements. The determination of the timing of transfers is embedded in the quarterly valuation process, and therefore recorded at the end of each reporting period.

Firm offer

When a credible firm offer exists, the fair value should be based on the firm offer price minus all transaction costs. This method reflects the most concrete and observable market-based exit price available at the valuation date.

Value Based on Recent Transactions

Recent arm’s‑length transactions (typically within 12 months) are often the best indication of fair value. Adjustments must be made if the company’s performance or market conditions have materially changed since the transaction.

Put Option

Where FMO holds an exercisable put option, the fair value may be based on its strike value, considering also the counterparty’s ability to execute the option. This method relies on counterparty risk assessment and contractual clarity.

Multiples (Book, Earnings, Market/Industry, Anchored)

Multiples apply when comparable financial or market data can be used to estimate value. Book multiples are applied to reflect equity performance. Earnings multiples (EV/EBITDA, EV/EBIT, P/E) are applied for companies with maintainable earnings. Market/industry multiples rely on peer benchmarks. Anchored multiples use the post‑money valuation at investment entry, performance are subsequently assessed.

Discounted Cash Flow (DCF)

DCF values an investment based on the present value of expected future cash flows or earnings, discounted using a risk‑adjusted rate.

Net Asset Value (NAV)

Net asset value involves the application of the reported NAV. This is directly applied as the valuation input for fund investment. And it could also be applied to direct investments of which the value is indirectly derived from a fund’s NAV

Cost as Best Estimate

If no reliable valuation inputs are available—typically during the first 12 months of an investment—the cost of FMO’s investment may serve as the best estimate of fair value.

Other Methods

When none of the standard methodologies are applicable, other valuation methods may be used, but only with clear, enhanced justification explaining why all typical alternatives are unsuitable.

Financial instruments not measured at fair value

The table below presents the carrying value and estimated fair value of the financial assets and liabilities that are not measured at fair value.

The carrying values of the financial asset and liability categories in the table below are measured at AC. The underlying changes to the fair value of these assets and liabilities are therefore not recognized in the balance sheet.
The valuation technique we use for the fair value determination of these financial instruments is the discounted cash-flow method. The discount rate we apply is a spread curve based on the average spread of the portfolio. The fair value calculation is mainly based on level 3 inputs.

Carrying value financial assets	2025		2024
At December 31	Carrying value	Fair value	Carrying value	Fair value
Current account with FMO (asset)	4,647	4,647	6,039	6,039
Loans to the private sector at AC	100,163	97,547	121,338	112,385
Total non fair value financial assets	104,810	102,194	127,377	118,424

The following table gives an overview of the financial instruments measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

December 31, 2025	Level 1	Level 2	Level 3	Total
Financial assets at FVPL
Short-term deposits mandatory at FVPL	126,488	-	-	126,488
Loans to the private sector at FVPL	-	-	19,606	19,606
Equity investments	12,610	-	137,258	149,868
Other financial assets at FV¹	-	-	6,754	6,754
Total financial assets at fair value	139,098	-	163,618	302,716

1 The valuation of the Other financial assets is related to VC and the valuation is derived from the waterfall.

December 31, 2024	Level 1	Level 2	Level 3	Total
Financial assets at FVPL
Short-term deposits mandatory at FVPL	58,340	-	-	58,340
Loans to the private sector at FVPL	-	-	19,977	19,977
Equity investments	13,041	-	192,867	205,908
Other financial assets at FV	-	-	21,875	21,875
Total financial assets at fair value	71,381	-	234,719	306,100

The following table shows the movements of financial assets measured at fair value based on level 3.

	Loans to the private sector	Equity investments	Total
Balance at January 1, 2025	19,977	192,867	212,844
Total gains or losses
ˑ In profit and loss (changes in fair value)	1,053	-463	590
Purchases/disbursements	953	13,345	14,298
Sales/repayments	-446	-53,541	-53,987
Write-offs	-912	-	-912
Accrued income	-	-	-
Exchange rate differences	-1,000	-14,950	-15,950
Changes in amortizable fees	-19	-	-19
Other	-	-	-
Balance at December 31, 2025	19,606	137,258	156,864

	Loans to the private sector	Equity investments	Total
Balance at January 1, 2024	21,415	206,233	227,648
Total gains or losses		-
ˑ In profit and loss (changes in fair value)	2,079	-33,426	-31,347
Purchases/disbursements	3,252	26,828	30,080
Sales/repayments	-6,674	-15,823	-22,497
Write-offs	-913	-	-913
Accrued income	-358	-	-358
Exchange rate differences	1,176	9,055	10,231
Changes in amortizable fees	-	-	-
Reclassification Loans versus Equity	-	-	-
Other	-	-	-
Balance at December 31, 2024	19,977	192,867	212,844

Type of loan investment	Fair value at December 31, 2025	Valuation technique	Range (weighted average) of significant unobservable inputs	Fair value measurement sensitivity to unobservable inputs

Loans	5,293	ECL measurement	Based on client rating	An improvement/deterioration of the Client Rating with 1 notch will result approx 0.4% increase/decrease
	10	Credit impairment	n/a	n/a
Debt Funds	14,303	Net Asset Value	n/a	n/a
Total	19,606

Type of equity investment	Fair value at Dec 31, 2025	Valuation technique	Range (weighted average) of significant unobservable inputs	Fair value measurement sensitivity to unobservable inputs

Private equity fund investments	99,789	Net Asset Value	Discounts applied ranging from 0 to 100%	Changes in the discounts applied would result in a lower/ higher fair value in valuation of €0,9 million.
Private equity direct investments	5,231	Recent transactions	Discounts applied 0%	n/a
	10,985	Book multiples	Discounts applied ranging from 0 to 50% Book multiple applied 1.0	Changes in the discounts applied would result in a lower/ higher fair value in valuation of €0.1 million. Changes in the applied multiple with 10% would result is a lower/higher fair value of €2.0 million
	12,806	Earning Multiples	Discounts applied ranging from 0 to 10% Earnings multiple applied 3.65	Changes in the discounts applied would result in a lower/ higher fair value in valuation of €0.1 million. Changes in the applied multiple with 10% would result is a lower/higher fair value of €1.3 million
	7,811	Net Asset Value	Discounts applied ranging to 80%	n/a
	636	Cost
Total	137,258

22. Related party information

Dutch Government:

The Dutch Ministry of Foreign Affairs, Directoraat-Generaal Internationale Samenwerking (DGIS) sets up and administers the investments funds (“State Funds”), including MASSIF, according to the Dutch Government’s development agenda. DIGS is the main contributor to MASSIF.

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”)

The Dutch development bank FMO supports sustainable private sector growth in developing and emerging markets by leveraging its expertise in agribusiness, food & water, energy, financial institutions, Dutch business focus areas to invest in impactful businesses. FMO is a public-private partnership, with 51% of FMO’s shares held by the Dutch State and 49% held by commercial banks, trade unions and other members of the private sector. FMO has a triple A rating from both Fitch and Standard & Poor’s.

FMO has been entrusted by the Dutch Government to execute the mandates of the State Funds: Currently MASSIF, Building Prospects, Access to Energy – I and Dutch Fund for Climate and Development Land Use Facility are under FMO’s direct management; the execution of Access to Energy – II and the other facilities of the Dutch Fund for Climate and Development are performed by third parties under FMO’s supervision.

FMO charges a management fee to the Dutch Ministry of Foreign Affairs and it is reimbursed accordingly from MASSIF’s subsidy amount (2025: €9.6 million; 2024: €10.1 million). FMO is also a minor contributor to the fund with a total contribution of €7.8 million in 2025 (2024: €7.8 million).

23. Subsequent events

There has been no significant subsequent event between the balance sheet date and the date of authorization of these accounts which should be reported by the Fund.