news - FMO issues two bonds denominated in Latin American currencies

Today FMO announced the issuance of a bond denominated in Dominican Peso (DOP) and a bond in Brazilian Real (BRL). Both transactions were structured, arranged and distributed by Citigroup and issued under FMO’s Debt Issuance Program.

The repeat issuance of bonds linked to emerging market currencies reflects FMO’s strategy to promote financing in these currencies. The Currency Exchange Fund (TCX) provided a hedge to FMO for the transaction in DOP. By issuing the DOP linked bond and hedging the cash flows with TCX, FMO facilitates the creation of additional capacity for DOP linked lending and hedging. The recent positive economic developments in the Dominican Republic have raised the demand for financing in DOP.

FMO is pursuing opportunities, including potential transactions in DOP, to increase its financing in the Dominican Republic. FMO invests in sectors where it believes its contributions have the highest long-term impact: financial institutions, energy and agribusiness. This sustains FMO’s mission to help entrepreneurs build a better world.

The cash flows of the DOP linked bond are calculated in DOP and settled in USD. The bond has a maturity of 5 years, a fixed rate coupon of 8.9% and a notional of DOP 230 million.  The BRL bond is a zero coupon note with a notional of BRL 100 million and a maturity of 5 years. Both bonds will be listed on the Euro MTF market.