news - FMO successfully issues EUR 500 million 7-Year Sustainability Bond


FMO successfully issues EUR 500 million 7-Year Sustainability Bond

March 31, 2020

Final Terms:


Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO)


Aaa (stable) / AAA (stable)


Fixed Senior Unsecured Notes


EUR 500 million


0.125% annual

Pricing Date:

27th March 2020

Payment Date:

3rd April 2020

Maturity Date:

3rd April 2027

Reoffer Spread:

MS+31bps / DBR 0.25% 15/02/2027+76.7bps

Reoffer Price / Yield:

99.826% / 0.150%

Joint Lead Managers:

BofA Securities, Credit Agricole CIB, HSBC

Issue Highlights:

  • On Friday 27th March 2020, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), rated Aaa/AAA, priced a new EUR 500 million 7-year Sustainability Bond at MS+31bps. This is equivalent to 76.7bps over the DBR 0.25% 15/02/27 and a reoffer price of 99.826%.
  • FMO’s first public Euro transaction since May 2017 and its first benchmark of 2020.
  • Taking advantage of improved market conditions, FMO announced the mandate for a new EUR 7-year RegS Sustainability Bond on Thursday 26th March at 1pm London time.
  • At 8.10am UK time the following morning, the transaction was announced with IPTs at mid-swaps+34bps area for EUR 500 million size (no-grow).
  • The deal garnered positive investor interest from the offset, with books in excess of EUR1 billion (excluding JLM interest) at 9am London time, allowing FMO to revise price guidance 2bps tighter at mid-swaps+32bps area (+/-1bp WPIR).
  • This momentum continued, allowing the issuer to set final spread 1bp tighter at mid-swaps+31bps ten minutes later, with books subsequently closing in excess of EUR2.1 billion (excluding JLM interest).
  • FMO’s largest order book to date with participation from around 70 accounts of which 28 new and strong interest from sustainable investors
  • The net proceeds of the issue will be allocated within FMO’s Treasury to a special sub-portfolio that will be linked to FMO’s lending operations in the fields of green and social projects aiming at reducing inequalities  (“Eligible Projects”), according to the FMO Sustainability Bond Framework. FMO’s definition of green projects focuses on climate-related projects. FMO defines three sub-categories under green, climate change mitigation, climate change adaptation and other footprint. FMO’s definition on social projects, aiming at reducing inequalities, defines 2 subcategories: investments in the poorest countries (LDCs, Least Developed Countries), investments in inclusive business

  • Eligible Green Projects include, but are not limited to, investments in:
    • Renewable energy projects such as solar, wind, geothermal power and run-of-river hydro
    • Energy efficiency projects in buildings and in industrial equipment
    • Agriculture, forestry and other land use
    • Responsible agriculture, food production, transport, waste and wastewater projects (including biosphere conservation projects)
  • Eligible social projects aiming at reducing inequality include, but are not limited to, investments in:
    • Microfinance
    • Women Owned SMEs (WSMEs)
    • Agricultural SMEs
    • Smallholder finance
    • Youth finance
  • FMO closely monitors the impact of the COVID-19 pandemic in emerging markets in general and the impact the pandemic has on its clients. In addition, a combination of financial and non-financial assistance for our clients is explored to help them mitigate the fall-out and boost resilience

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