Investor relations

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Investor Relations

FMO is the Dutch development bank. The Dutch State guarantees FMO’s bonds via an explicit issuer guarantee.

Founded in 1970, FMO is a public-private development bank. We have investments in more than 85 countries, offering private sector companies and financial insitutions in developing countries a variety of financial products, as well as expertise and access to our networks. With a committed portfolio of €9.8 billion, FMO is one of the larger bilateral private sector development banks globally.

Funding

FMO has a funding need in 2017 of EUR 1.0 to 2 billion. FMO strives to achieve diversification in the markets, geography, investor types and tenor of its funding. FMO funds itself in public markets and through private placements. 

Treasury has defined the EUR and USD market as the strategic funding markets for FMO. Furthermore, we attract funding in various currencies under our Issuance Programmes. FMO follows a policy of duration matching, which means that the tenor of our assets must be matched with the tenor of our liabilities.

State Guarantee

The Agreement with the Dutch State includes two important articles from an investor point of view:

  • Art. 7: Maintenance Obligation:The Dutch State is committed to covering all losses from operations that cannot be covered by general or specific provisioning and reserves
  • Art. 8: Financial Security Obligation: The Dutch State shall prevent situations arising in which FMO is unable to meet its commitments on time. Commitments include funding raised in capital markets

The Agreement with the Dutch state is valid for an indefinite period and may be cancelled subject to a twelve-year notice period. In practice FMO will not issue debt projects beyond 12 years.

Ownership structure

Founded in 1970, FMO is a public-private development bank.The Dutch government is our major shareholder, holding a 51% stake. Other shareholders include large Dutch banks (42%) and employers’ associations, trade unions and individual investors (7%).We comply with internationally-accepted banking standards and are supervised by the Dutch Central Bank.