FMO, officially called Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V., is pleased to announce the successful issuance of its third public-format Tier 2 bond, amounting to €300 million. This bond, which matures on June 19, 2036, includes a call option exercisable after six years.
The issuance attracted significant interest from the investor community, with final order books exceeding €850 million. During the bookbuilding process, orders surpassed the €1 billion mark, prompting FMO to adjust the final terms by moving 25 basis points from the initial price thoughts and setting the final spread at 75 basis points over the midswap rate. The coupon rate has been established at 3.000%.
The success of this transaction is highlighted by a high-quality order book, driven by strong investor participation from the Nordics (47%), Benelux (38%), and France (9%). Central Banks/Official Institutions (37%), Pension Funds/Insurance companies (33%), and Banks & Private Banks (17%) represented the majority of investor types.
The notes are expected to receive an AA+ rating from Fitch. HSBC Continental Europe, ING Bank N.V., and J.P. Morgan SE served as Joint Lead Managers for this issuance.
