|Borrower:||Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO)|
|Ratings:||Aaa (stable) / AAA (stable)|
|Sustainability Rating:||C+, Prime by ISS ESG|
|Instrument:||Fixed Senior Unsecured Notes|
|Size:||USD 500 million|
|Pricing Date||8th November 2023|
|Payment Date:||15th November 2023 (T+5)|
|Maturity Date:||15th November 2028|
|Reoffer Spread:||SOFR MS+48|
|Reoffer Price / Yield:||99.786% / 4.743% (s.a.), 4.800% (annual)|
|Reoffer Spread to UST:||UST 4.875% 31 October 2028 + 20.65bps|
|Joint Lead Managers:||Bank of America, Citi, J.P. Morgan, RBC Capital Markets|
• On Wednesday 8th November, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), rated
Aaa/AAA priced a new USD 500 million 5-year green bond at SOFR MS+48bps, equivalent to a spread of +20.65 versus
the on-the-run 5-year US treasury reference.
• This is FMO’s second green benchmark syndication in the US dollar market, following FMO’s 5-year USD 500 million
green transaction in February 2019.
• On the 2nd November, FMO announced a mandate for a series of fixed income investor calls beginning on the 6th
November with a potential USD 500 million (“no-grow”) 5-year RegS transaction to follow, subject to market conditions.
• Following constructive investor meetings, FMO formally announced the transaction on Tuesday 6th November at 15:00
CET with Initial Price Thoughts (“IPTs”) of SOFR MS+51bps area.
• Books opened the next morning at 09:15 CET with revised guidance of SOFR MS+50bps. Indications of Interest reached
in excess of USD 600 million (excl. JLM Interest) at this point.
• Momentum for the transaction was strong throughout the European morning and with books over USD 1 billion (excl.
JLM Interest), at 10:28 CET the final spread was set at SOFR MS+48bps.
• Books closed at 11.00 CET, with final books standing at USD 1.3 billion (excl. JLM interest).
• The transaction was well supported by high-quality, and geographically diverse investor demand. 51 investors
participated in the transaction, of which about 40% have a dedicated green bonds mandate
• The net proceeds of the issue of Notes (in the form of Green Bonds) will be allocated within FMO’s Treasury to a special
sub-portfolio that will be linked to FMO's lending operations in the field of green finance and inclusive finance (“Eligible
• Eligible green projects include, but are not limited to, investments in:
o Renewable energy projects such as solar, wind, geothermal power and run-of-the-river hydro
o Energy efficiency projects in buildings and in industrial equipment
o Agriculture, forestry and other land use
o Responsible agriculture, food production, transport, waste and wastewater projects (including biosphere
The above examples of Eligible Projects are for illustrative purposes; for a full list refer to FMO’s SBF: