news - FMO successfully issues USD 500 million Floating Rate Note

Final Terms of the Transaction

Rating:                              AAA (S&P) / AAA (Fitch) both stable

Issue Amount:                USD 500 million

Pricing Date:                   29 August 2018

Maturity Date:               07 September 2021

Coupon:                           3m$L +4bps

Format:                             Floating Rate Note / Regulation S

Re-Offer Price:               100.00%

ISIN:                                   XS1875396506

Lead Managers:             BofA Merrill Lynch, Daiwa Capital Markets, J.P. Morgan

On Wednesday, 29^th of August 2018, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), the Dutch Development Bank rated AAA by S&P and AAA by Fitch (both stable), launched and priced its new USD 500 million 3-year RegS FRN transaction. 

Transaction highlights

• FMO captured an optimal market window and a very receptive USD space given lack of SSA supply in the currency, driven by cross-currency basis favouring EUR & GBP issuance swapped into USD. 

• The issuer elected to announce its USD 500 million (no-grow) transaction on Tuesday, 28^th of August 2018 at 1pm London time, with initial price thoughts set at 3m$L plus 8bps area. 

• Following a stable market backdrop and overwhelming investor demand, indications of interest grew overnight to exceed $1 billion, with books officially opening on Wednesday, 29^th of August at just after 8:30am London time and price guidance revised to 3m$L plus 6bps area. 

• By 11am London time, books had grown to exceed $1.3 billion and price guidance was subsequently revised to 3m$L plus 5bps area (+1 / -1 WPIR). 

• Final books exceeded $1 billion, enabling FMO to price the transaction at 3m$L plus 4bps, representing a 4bps move from initial price thoughts. 

• This transaction represents the tightest ever pricing achieved for an FMO USD benchmark, in addition to recording the issuer’s largest order book.

Distribution

• 29 high-quality investors participated in the offering, demonstrating FMO’s committed and diverse investor base and highlighting its established position in the capital markets.

• Participation was spread across a broad range of regions and classes, with the UK dominating the overall total of 52%, followed by Middle East & Africa taking 31%, Europe 10%, and the Americas 7%. In terms of investor type, Banks took 40%, Central Banks / Official Institutions 39%, with Asset Managers taking 20% and Pension / Insurance the remaining 1%.

   Investor demand by type

  

  Investor demand by region