news - FMO EUR 500 million 5-Year Inaugural Social Bond

On 24th September 2025, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), rated AAA/AAA priced a new EUR 500 million 5-year inaugural Social bond at MS+18bps. 

This bond was issued under FMO’s recently updated Sustainability Bond Framework and Second Party Opinion provided by S&P Global Ratings. Social categories seek to widen access to financial services and contribute to economic development by improving access to food and energy and are directly aligned with the goal of Reducing Inequalities (SDG 10).
The mandate for the EUR 500m 5-year WNG inaugural Social benchmark was announced on Monday, 22nd September 2025 at 10:43 CET alongside a series of fixed income investor calls beginning on the same day.

Following constructive investor meetings, FMO formally announced the transaction on Wednesday 24th September at 9:00 CET with guidance at MS+22bps area.
Momentum for the transaction was strong throughout the European morning. At 10:32 CET, with order books exceeding EUR 2.5 billion (excluding JLM interest), the spread was revised at MS+20bps area. Books continued to grow reaching EUR 3.9bn (incl. EUR 175m JLM interest) at 10:50 CET, allowing FMO to further tighten the spread by 2bps at MS+18bps. The deal’s final book closed above EUR 4.4bn (incl. EUR 175m JLM interest) at 11.10 CET.

Among the 62 investors who participated, CB/OIs secured 43% of the total allocation, with Banks also receiving 23%. Asset Managers followed at 22%, while Pension Funds and Insurance companies were allocated 12%. In terms of regional distribution, Nordics investors led with 29% of the allocations, followed by the Benelux 27%, DACH region (Germany, Austria, Switzerland) at 11%, Asia at 11%, France at 6%, Southern Europe at 5%, the UK at 7%, and Middle East/Africa regions collectively accounting for 4%.

The net proceeds of the issue of Notes (in the form of Social Bonds) will be allocated to the financing and/or refinancing of eligible social assets according to the FMO Sustainability Bonds framework. Around 45% to 55% of FMO’s outstanding debt is issued in ESG format.