Notes to the financial statements

1. Current account with FMO (Asset)

	2025	2024
Current account with FMO	6,068	6,276
Balance at December 31	6,068	6,276

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 very liquid accounts with high credit ratings 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	29,497	42,957
Balance at December 31	29,497	42,957

3. Derivatives financial instruments

BP holds a conversion option with a single exposure which is classified as a derivative under IFRS 9 and measured at fair value through profit or loss.

The fair value is based on the company's net asset value and significant unobservable inputs. It is therefore classified as level 3.

At December 31, 2025	Notional amounts	Fair value assets	Fair value liabilities
Derivatives related to asset portfolio	-	11,419	-

At December 31, 2024	Notional amounts	Fair value assets	Fair value liabilities
Derivatives related to asset portfolio	-	10,338	-

4. Loans to the private sector

Loans originated by the Fund include loans to the private sector in developing countries for the account and risk of the Fund. The tables below present the movement in loans during 2024 and 2025.

	Loans to the private sector measured at AC	Loans to the private sector measured at FVPL	Total
Balance at January 1, 2025	131,507	41,080	172,587
Disbursements	21,656	3,774	25,430
Interest capitalization	321	1,305	1,626
Conversion from Loans versus Equity	-	-2,109	-2,109
Repayments	-22,603	-421	-23,024
Write-offs	-	-12,903	-12,903
Changes in amortizable fees	-333	-	-333
Changes in fair value	-	7,663	7,663
Changes in accrued income	22,090	-241	21,849
Exchange rate differences	-14,732	-3,827	-18,559
Movement of impairment charges	-21,446	-	-21,446
Balance at December 31, 2025	116,460	34,321	150,781

	Loans to the private sector measured at AC	Loans to the private sector measured at FVPL	Total
Balance at January 1, 2024	169,754	29,473	199,227
Disbursements	26,497	6,419	32,916
Interest capitalization	2,611	1,543	4,154
Conversion from Loans versus Equity	-	-	-
Repayments	-33,088	-241	-33,329
Write-offs	-	-4,681	-4,681
Derecognized and/or restructured loans	77	-	77
Changes in amortizable fees	74	-	74
Changes in fair value	-	6,418	6,418
Changes in accrued income	-21,721	-45	-21,766
Exchange rate differences	10,201	2,194	12,395
Movement of impairment charges	-22,898	-	-22,898
Balance at December 31, 2024	131,507	41,080	172,587

The contractual amount of assets that were written off during the period (2025: €12.9 million, 2024: €4.7 million) are still subject to enforcement activity. There were no recoveries from written off loans (2024: €0.0 million).

The following tables summarize the loans segmented by sector and by geographical area:

			2025
Loans segmented by sector	Stage 1	Stage 2	Stage 3	Fair value	Total 2025
Financial Institutions	-	-	-	1,588	1,588
Energy	22,160	4,660	20,252	16,698	63,770
Agribusiness	46,390	12,247	7,984	16,035	82,656
Infrastructure, Manufacturing and Services	-	-	2,767	-	2,767
Net balance at December 31	68,550	16,907	31,003	34,321	150,781


			2025
Loans segmented by geographical area	Stage 1	Stage 2	Stage 3	Fair value	Total 2025
Africa	29,226	13,881	21,787	11,094	75,988
Asia	17,622	3,026	6,449	3,416	30,513
Latin America & the Caribbean	-	-	2,767	7,284	10,051
Europe & Central Asia	4,366	-	-	-	4,366
Non - region specific	17,336	-	-	12,527	29,863
Net balance at December 31	68,550	16,907	31,003	34,321	150,781


					2025
Gross amount of loans to companies in which the Fund has equity investments					10,207
Gross amount of subordinated loans					48,415

			2024
Loans segmented by sector	Stage 1	Stage 2	Stage 3	Fair value	Total 2024
Financial Institutions	-	-	-	1,589	1,589
Energy	22,335	1,733	37,622	17,262	78,952
Agribusiness	48,795	16,156	1,488	22,229	88,668
Infrastructure, Manufacturing and Services	-	-	3,378	-	3,378
Net balance at December 31	71,130	17,889	42,488	41,080	172,587


			2024
Loans segmented by geographical area	Stage 1	Stage 2	Stage 3	Fair value	Total 2024
Africa	30,081	5,179	38,882	16,901	91,043
Asia	14,922	12,710	228	4,437	32,297
Latin America & the Caribbean	-154	-	3,378	7,168	10,392
Europe & Central Asia	6,630	-	-	-	6,630
Non - region specific	19,651	-	-	12,574	32,225
Net balance at December 31	71,130	17,889	42,488	41,080	172,587


					2024
Gross amount of loans to companies in which the Fund has equity investments					30,606
Gross amount of subordinated loans					44,626

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

Changes in loans to the private sector at AC in 2025	Stage 1		Stage 2		Stage 3		Total
	Gross amount	ECL allowance	Gross amount	ECL allowance	Gross amount	ECL allowance	Gross amount	ECL allowance
At December 31, 2024	71,856	-726	20,375	-2,486	62,174	-19,686	154,405	-22,898
Additions	19,069	-345	1,505	-91	1,082	-	21,656	-436
Exposures derecognised or matured / lapsed (excluding write-offs and modifications)	-10,840	49	-6,576	563	-5,187	5,132	-22,603	5,744
Transfers to Stage 1	1,649	-58	-1,649	58	-	-	-	-
Transfers to Stage 2	-7,002	52	17,672	-1,332	-10,670	1,280	-	-
Transfers to Stage 3	-	-	-9,859	1,353	9,859	-1,353	-	-
Modifications of financial assets (including derecognition)	-	-	282	-	39	-	321	-
Changes in risk profile not related to transfers	-	239	-	-81	-	-28,805	-	-28,647
Amounts written off	-	-	-	-	-	-	-	-
Changes in amortizable fees	-148	-	-214	-	29	-	-333	-
Changes in accrued income	64	-	-68	-	22,095	-	22,091	-
Foreign exchange adjustments	-5,373	64	-2,794	249	-6,565	1,579	-14,732	1,892
At December 31, 2025	69,275	-725	18,674	-1,767	72,856	-41,853	160,805	-44,345

Changes in loans to the private sector at AC in 2024	Stage 1		Stage 2		Stage 3		Total
	Gross amount	ECL allowance	Gross amount	ECL allowance	Gross amount	ECL allowance	Gross amount	ECL allowance
At December 31, 2023	63,925	-905	23,359	-2,183	82,470	-35,825	169,754	-38,913
Additions	25,333	-457	567	-319	597	-	26,497	-776
Exposures derecognised or matured / lapsed (excluding write-offs and modifications)	-7,627	66	-16,147	1,872	-9,314	5,439	-33,088	7,377
Transfers to Stage 1	-71	-	71	-	-	-	-	-
Transfers to Stage 2	-11,399	348	11,399	-348	-	-	-	-
Transfers to Stage 3	-2,704	129	-	-	2,704	-129	-	-
Modifications of financial assets (including derecognition)	-	-	77	-	2,611	-	2,688	-
Changes in risk profile not related to transfers	-	139	-	-1,353	-	12,852	-	11,638
Amounts written off	-	-	-	-	-	-	-	-
Changes in amortizable fees	-39	-	43	-	70	-	74	-
Changes in accrued income	699	-	-434	-	-21,986	-	-21,721	-
Foreign exchange adjustments	3,739	-46	1,440	-155	5,022	-2,023	10,201	-2,224
At December 31, 2024	71,856	-726	20,375	-2,486	62,174	-19,686	154,405	-22,898

We also refer to our accounting policy on macro-economic scenarios on PD estimates.

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 measured at FVPL
Balance at January 1, 2025	135,387
Purchases and contributions	11,383
Changes in fair value	-30,657
Conversion of loans to equity	1,987
Return of capital	-1,584
Net results from sales	110
Balance at December 31, 2025	116,516

	Equity investments measured at FVPL
Net balance at January 1, 2024	120,891
Purchases and contributions	27,220
Changes in fair value	-8,555
Conversion of loans to equity	-
Return of Capital	-4,170
Net results from sales	1
Balance at December 31, 2024	135,387

The following table summarizes the equity investments segmented by sector:

	2025	2024
Financial Institutions	5,231	5,080
Energy	20,816	29,087
Agribusiness	42,402	50,702
Multi-Sector Fund Investments	21,220	20,891
Infrastructure, Manufacturing, Services	26,847	29,627
Balance at December 31	116,516	135,387

6. Other financial assets at FV

	2025	2024
Other financial assets at FV ¹	18,234	21,874
Balance at December 31	18,234	21,874

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

7. Current account with FMO (Liability)

	2025	2024
Current account with FMO	-	-118
Balance at December 31	-	-118

8. Accrued and other liabilities

Accrued liabilities relate mainly to CD expenses.

	2025	2024
Suspense account (Bank reconciliation)	591	599
Accrued costs on capacity development	2,450	3,630
Other liabilities	79	-
Balance at December 31	3,120	4,229

The financial statements captions 'Accrued liabilities' and 'Other liabilities' which were presented separately in the December 31, 2024 financial statements have now been merged and presented as a single financial statement caption in this financial statement.

9. Contributed fund capital and other reserves

Contributed Fund Capital	2025	2024
Contribution DGIS previous years	424,516	414,516
Contribution DGIS current year	-	10,000
Balance at December 31	424,516	424,516

	2025	2024
Total subsidy allocated to BP	472,012	472,012
Total subsidy withdrawn from DGIS	424,516	424,516
Subsidy available BP	47,496	47,496

	2025	2024
Other reserves	6,505	6,505
Balance at 31 December	6,505	6,505

Undistributed results	2025	2024
Balance at January 1	-75,611	-69,178
Addition: Net profit/loss	29,426	-6,433
Balance at December 31	-46,185	-75,611

10. Net interest income

	2025	2024
Interest income related to cash balances with banks	106	160
Interest income from financial instruments measured at AC	9,864	-1,223
Total interest income calculated using the effective interest method	9,970	-1,063
Interest on loans measured at FVPL	3,600	3,335
Interest on short-term deposits at FVPL	1,561	1,450
Other interest income	5,161	4,785
Net interest income	15,131	3,722

Interest on loans measured at AC in 2024 contained a deduction of € 1.2 million relating to contractually waived penalty interest upon repayment by a specific borrower.

11. Fee and commission income

	2025	2024
Prepayment fees	-	-137
Administration fees	81	72
Other fees (like arrangement, cancellation and waiver fees)	94	103
Total fee and commission income	175	38

12. Dividend income

	2025	2024
Dividend income direct investments	2,058	4,150
Dividend income fund investments	279	489
Total dividend income	2,337	4,639

13. Net results from equity investments

	2025	2024
Results from equity investments
Unrealized results from FV movements	-15,457	-16,634
Unrealized results from FX movements	-15,200	8,079
Net results from fair value re-measurements	-30,657	-8,555

Results from sales
Realized results	90	-2,209
Release unrealized results	20	2,210
Net results from sales	110	1
Net results from equity investments	-30,547	-8,554

The net result on sales represents the reversal of accumulated previously recognised unrealised fair value movements on the instruments sold and the actual realised 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.

14. Results from financial transactions

	2025	2024
Results on sale and valuation of loans at FVPL	-5,240	1,738
Results on sale and valuation of derivatives related to asset portfolio	2,301	-1,600
Foreign exchange results	-21,814	12,568
Results on ventures program	-5,218	-5,639
Results from grants	32	-
Total results from financial transactions	-29,939	7,067

The movement for results from financial transactions can be mainly explained by changes in valuations for derivatives and FX results. This movement is primarily driven by changes in cross currency basis spreads and yield curves of various underlying currencies (e.g. USD, EUR).

15. Operating expenses

Remuneration FMO concerns the management fees paid to FMO. Capacity development expenses relate to development contributions contracted with beneficiaries in terms of the fund's objectives. Advisory costs are related to consultancy services provided by legal advisors. Evaluation costs are expenses made during frequent investigations and controls of existing investments and costs related to due diligence of new projects.

	2025	2024
Remuneration FMO	-9,156	-9,594
Capacity development expenses	-1,003	-1,401
Advisory costs	-	-501
Evaluation expenses	-	-385
Other operating expenses	-31	-
Total expenses	-10,190	-11,881

16. Impairment charges on financial assets and loan commitments

Impairment charges are calculated for Loans at private sector at AC (including off balance loan commitments). The movement in impairment charges for each of these items is presented in their relevant notes, while the related charges to the statement of profit or loss are presented in the table below:

	2025	2024
Impairment charges on
Loans	2,196	12,712
Loan commitments	108	-48
Release of impaired interest	-	21,695
Total impairment charges	2,304	34,359

Total impairment on loans in the profit and loss account
	2025	2024
Additions / exposure derecognised or matured/lapsed (excluding write - offs)	5,309	6,601
Changes in risk profile (including changes in accounting estimates)	-28,647	11,638
Other	25,534	-5,527
Balance at December 31	2,196	12,712

The table below shows the values of the IMF GDP forecasts used in each of the economic scenarios for the ECL calculations of the top 10 countries where the Fund operates. 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.

IMF GDP % Growth Forecasts	2025	2026
Sudan (The)	-0.4%	8.8%
Benin	6.5%	6.2%
Kenya	4.8%	4.9%
Togo	5.3%	5.5%
India	6.2%	6.3%
Sri Lanka ¹	0.0%	0.0%
Myanmar	1.9%	2.1%
Uganda	6.1%	7.6%
Moldova	0.6%	2.6%
Ghana	4.0%	4.8%

1 IMF had no forecasts of GDP growth rates available for Sri Lanka.

17. Off-Balance Sheet information

To meet the financial needs of borrowers, the Fund enters into various irrevocable commitments (loan commitments, equity commitments). Though these obligations are not recognized on the statement of financial position, they do obtain Credit Risk similar to the loan portfolio. Therefore, provisions are calculated for loan commitments according to ECL measurement methodology. Refer to the 'Accounting Policies' chapter.

Nominal amounts for irrevocable facilities is as follows:

	2025	2024
Irrevocable facilities
Contractual commitments for disbursements of:
Loans	59,445	55,158
Equity investments	60,273	65,350
Total irrevocable facilities	119,718	120,508

The movement in exposure and ECL allowances for commitments of AC loans 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	45,264	-488	-	-	431	-	45,695	-488
Additions	49,207	-574	1,691	-60	1,227	-	52,125	-634
Exposures derecognised or matured (excluding write-offs)	-35,833	432	-1,505	61	-1,434	-	-38,772	493
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	7	-	-7	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Changes to models and inputs used for ECL calculations	-	26	-	6	-	-	-	32
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	-5,814	62	-186	-	-54	-	-6,054	62
At December 31, 2025	52,824	-535	-	-	170	-	52,994	-535

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	52,316	-409	-	-	-	-	52,316	-409
Additions	26,323	-231	1,478	-	8,526	-109	36,327	-340
Exposures derecognised or matured (excluding write-offs)	-34,900	203	-3,584	98	-8,103	109	-46,587	410
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-2,106	46	2,106	-46	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Changes to models and inputs used for ECL calculations	-	-67	-	-52	-	-	-	-119
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	3,631	-30	-	-	8	-	3,639	-30
At December 31, 2024	45,264	-488	-	-	431	-	45,695	-488

18. Analysis of financial assets and liabilities by measurement basis

The significant accounting policies summary describes how 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 by the headings in the statement of financial position.

December 31, 2025	FVPL - mandatory	Amortized cost	Total
Financial assets measured at fair value
Short-term deposits	29,497	-	29,497
Derivative financial instruments	11,419	-	11,419
Loans to the private sector	34,321	-	34,321
Equity investments	116,516	-	116,516
Other financial assets at FV	18,234	-	18,234
Total	209,987	-	209,987
Financial assets not measured at fair value
Loans to the private sector	-	116,460	116,460
Current accounts with FMO	-	6,068	6,068
Other receivables	-	744	744
Total	-	123,272	123,272
Financial liabilities not measured at fair value
Provisions	-	535	535
Accrued and other liabilities	-	3,120	3,120
Total	-	3,655	3,655

December 31, 2024	FVPL - mandatory	Amortized cost	Total
Financial assets measured at fair value
Short-term deposits	42,957	-	42,957
Derivative financial instruments	10,338	-	10,338
Loans to the private sector	41,080	-	41,080
Equity investments	135,387	-	135,387
Other financial assets at FV	21,874	-	21,874
Total	251,636	-	251,636
Financial assets not measured at fair value
Loans to the private sector	-	131,507	131,507
Current accounts with FMO	-	6,276	6,276
Other receivables	-	252	252
Total	-	138,035	138,035
Financial liabilities not measured at fair value
Current accounts with FMO	-	118	118
Provisions	-	488	488
Accrued and other liabilities	-	4,229	4,229
Total	-	4,835	4,835

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 and non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy, FMO has a valuation process in place to decide its valuation policies and procedures and analyze changes in fair value measurement from period to period.

The Fund’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 techniques

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. The 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 Margin Adjustments (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 Other Features (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

The Fund 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 available multiples are applied as input for the valuation. For the valuation process of the equity investments, we further refer to the accounting policies within these financial statements as well as section 'Equity Risk', part of the Risk Management chapter. The determination of the timing of transfers is embedded in the quarterly valuation process and is 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.

Put Option

Where the Fund 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 the investment. And it could also be applied to direct investments of which the value is indirectly derived from the respective NAV.

Cost as Best Estimate

If no reliable valuation inputs are available - typically during the first 12 months of an investment, the cost of Fund'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.

Other financial assets carried at FVPL represent amounts attributable to the Dutch State in return for their co-investment in the FMO Ventures Program. The amount attributable to co-investors is based on a predefined value sharing waterfall which utilizes the values of the underlying investments in the program. The underlying investments in the program are valued using the existing equity investment fair valuation techniques described in the paragraphs above. The waterfall calculation defines the timing and amount of distributions to respective co-investors and is therefore applied to estimate the fair values of the related financial asset.

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 statement of financial position.

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.

	2025		2024
At December 31	Carrying value	Fair value	Carrying value	Fair value
Current account with FMO	6,068	6,068	6,276	6,276
Loans to the private sector	116,460	111,756	131,507	123,711
Total non fair value financial assets	122,528	117,824	137,783	129,987

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	29,497	-	-	29,497
Derivative financial instruments	-	-	11,419	11,419
Loans to the private sector mandatory at FVPL	-	-	34,321	34,321
Equity investments	-	-	116,516	116,516
Other financial assets at FV ¹	-	-	18,234	18,234
Total financial assets at FVPL	29,497	-	180,490	209,987

December 31, 2024	Level 1	Level 2	Level 3	Total
Financial assets at FVPL
Short-term deposits mandatory at FVPL	42,957	-	-	42,957
Derivative financial instruments	-	-	10,338	10,338
Loans to the private sector mandatory at FVPL	-	-	41,080	41,080
Equity investments	-	-	135,387	135,387
Other financial assets at FV ¹	-	-	21,875	21,875
Total financial assets at FVPL	42,957	-	208,680	251,637

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

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

	Derivative financial instruments	Loans to the private sector	Equity investments	Total
Balance at January 1, 2025	10,338	41,080	135,387	186,805
Total gains or losses
ˑ In profit and loss (changes in fair value)	2,301	7,663	-15,457	-5,493
Purchases/disbursements	-	3,774	11,372	15,146
Sales/repayments	-	-421	-1,573	-1,994
Interest Capitalization	-	1,305	-	1,305
Write-offs	-	-12,903	-	-12,903
Accrued income	-	-241	-	-241
Exchange rate differences	-1,220	-3,827	-15,200	-20,247
Conversion from loans to equity	-	-2,109	1,987	-122
Balance at December 31, 2025	11,419	34,321	116,516	162,256


	Derivative financial instruments	Loans to the private sector	Equity investments	Total
Balance at January 1, 2024	11,302	29,473	120,891	161,666
Total gains or losses
ˑ In profit and loss (changes in fair value)	-	6,418	-16,634	-10,216
Purchases/disbursements	1,368	6,419	27,219	35,006
Sales/repayments	-3,152	-241	-4,169	-7,562
Interest Capitalization	-	1,543	-	1,543
Write-offs	-	-4,681	-	-4,681
Accrued income	-	-45	-	-45
Exchange rate differences	820	2,194	8,079	11,093
Conversion from loans to equity	-	-	-	-
Balance at December 31, 2024	10,338	41,080	135,386	186,804

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

Loans	11,292	Discounted cash flow model	Based on client spread for fixed rate loans at FVPL	A decrease/increase of the used spreads with 1% will result is a higher/lower fair value of approx €0.7 million
	13,756	ECL measurement	Based on client rating for floating rate loans at FVPL	An improvement /deterioration of the Client Rating with 1 notch wil result approx 1.3% increase/decrease
	2,041	Credit impairment	n/a	n/a
Debt Funds	7,232	Net Asset Value	n/a	n/a
Total	34,321

There are no amounts for development contributions which are recognized as loans in 2025 (2024: €0.0 million).

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	57,569	Net Asset Value	Discounts applied ranging from 0 to 50%	Changes in the discounts applied would result in a lower/ higher fair value in valuation of €0.2 million
Private equity direct investments	11,323	Recent transactions	Discounts applied ranging from 0 to 50%	Changes in the discounts applied would result in a lower/ higher fair value in valuation of €0.2 million
	27,961	Book multiples	Discounts not applicable Book multiple applied at 1.0	Changes in the discounts are not applicable Changes in the applied multiple with 10% would result in a lower / higher fair value of approximately €0.2 million.
	1,293	Earning Multiples	Discounts not applicable Earnings multiple applied ranging from 1.0 to 2.0	Changes in the discounts are not applicable Changes in the applied multiple with 10% would result in a lower / higher fair value of approximately €0.2 million.
	7,875	Discounted Cash Flow (DCF)	Discounts applied ranging from 0 to 50% DCF model inputs: Discount rates applied at 12% Expected monthly cash flows ranging from €0.3 million to €2.7 million	Changes in the discounts applied would result in a lower / higher fair value of approximately €1.8 million. Changes in the DCF model by lowering the discount rate and increasing expected cash flows would result in a positive change in fair value of approximately €1.6 million.
	4,685	Put option	Discounts applied ranging from 0 to 20%	Changes in the discounts applied would result in a lower / higher fair value of approximately €0.1 million.
	2,366	Firm offers	n/a	n/a
	1,326	Other	Discounts applied ranging from 0 to 61%	Changes in the discounts applied would result in a lower / higher fair value of approximately €0.2 million.
	6	Cost	n/a	n/a
	2,112	Net Asset Value	n/a	n/a
Total	116,516

Type of financial instrument	Fair value at December 31, 2025	Valuation technique	Range (weighted average) of significant unobservable inputs	Fair value measurement sensitivity to unobservable inputs
Derivatives	11,419	Net Asset Value	n/a	n/a
Total	11,419

19. Related party information

The Fund defines the Dutch Government, FMO and its Management Board and Supervisory Board as related parties.

Dutch Government

The Dutch Ministry of Foreign Affairs, Directoraat-Generaal Internationale Samenwerking (DGIS) sets up and administers the Building Prospects fund, according to the Dutch Government’s development agenda. DGIS is the main contributor to Building Prospects, providing funding upon FMO’s request (2025: €0.0 million; 2024: €10.0 million).

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 and 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 several government funds. Currently MASSIF, Building Prospects, Access to Energy – I, the Market Creation Platform (MCP)) and the Land Use Facility of the Dutch Fund for Climate and Development (DFCD) are under FMO’s direct management. The execution of Access to Energy – II and the other facilities of DFCD 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 the subsidy amount of Building Prospects. The management fee amounts up to €9.2 million in 2025 (2024: €9.6 million). BP had sold no loan or equity exposure to FMO in 2025 or 2024.

20. Subsequent events

There have been no significant subsequent events between the balance sheet date and the date of authorization of these accounts which would be reported by the Fund.