news - US$ 500m 2.875% Benchmark due 19 May 2025


US$ 500m 2.875% Benchmark due 19 May 2025

May 16, 2022

Execution Highlights:
• On Thursday, 12th May 2022, Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden N.V. (FMO), the Dutch entrepreneurial development bank,
rated AAA/AAA, stable outlook by S&P/Fitch, priced a successful USD 500 million
RegS 3-year fixed rate no-grow benchmark. Joint Lead Managers on the deal were
BofA Securities, HSBC and RBC Capital Markets.
• The benchmark offers a 2.875% coupon and a spread of +16.38bps over Treasuries,
equivalent to +28bps over SOFR mid-swaps.
• The 3-year transaction represents FMO’s first US Dollar denominated benchmark
since June 2021.
• The transaction also marks FMO’s largest ever orderbook for a USD benchmark.
• Following a series of investor calls commencing on Tuesday May 3rd 2022, the new 3-
year benchmark was announced to the market on Wednesday May 11th at 2:30 UKT.
Simultaneously, Initial Price Thoughts were released at SOFR MS+31bps area.
• The transaction garnered strong momentum from the outset including several
anchor orders from key European accounts during the course of afternoon session.
• Books officially opened at 8:10am UKT on Thursday May 12th with Indications of
Interest (IOIs) in excess of $725m (excluding JLMs), allowing FMO to release
guidance at SOFR MS+30bps area.
• The orderbook continued to grow throughout the course of the morning and books
reached north of $1.2bn (excluding JLM) by 9:28am UKT. The strength and depth of
the orderbook prompted FMO to set the spread a further 2bps tighter at SOFR

Issuer: FMO (The Dutch Entrepreneurial Development Bank)
Rating: AAA (S&P) / AAA (Fitch) both stable
ESG Ratings: C+, Prime by ISS ESG and Sustainalytics 2nd out of 1071 banks
Size: USD 500 million
Pricing Date: 12th May 2022
Settlement Date: 19th May 2022
Maturity: 19th May 2025
Coupon: 2.875%
Re-offer Spread to SOFR MS: +28 bps
Re-offer Spread to Treasuries: +16.38bps
Re-offer Price: 99.766%
Re-offer Yield: 2.936% semi-annual / 2.958% annual
Lead Managers: BofA Securities, HSBC, RBC Capital Markets

• Despite the move tighter in pricing, the orderbook retained its strength, closing at
$1bn+ (excluding JLM). The transaction ultimately priced at 2:58pm UKT at an
equivalent spread of +16.38bps over Treasuries and an annual yield of 2.958%.
• Of the 24 unique investors who participated in the offering, 47% of the orderbook
was allocated to Central Banks/Official Institutions, 36% to Banks, 12% to
Insurance/Pension Funds and 5% to FM accounts.
• Regional investor distribution was equally as diverse with 23% of the transaction
going to the Nordics, 21% to the UK, 18% to Germany/Switzerland, 18% to
Africa/Other, 9% to the Americas, 7% to Asia and 4% to other parts of Europe.

Allocations by Investor Type

Central Banks / Official Institutions 47%
Banks 36%
Insurance / Pension Funds 12%
FM 5%

Allocations by Geography

UK 21%
DACH 18%
Africa & Other 18%
Americas 9%
Asia 7%
Other Europe 4%

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