news - FMO issues USD 500 million 5-year fixed rate note


FMO issues USD 500 million 5-year fixed rate note

October 17, 2019

USD 500 million 1.750% Benchmark due 12 December 2024

Rating AAA (S&P) /AAA (Fitch) both stable
Issue Size USD 500 million
Payment Date 24 October 2019
Maturity Date 12 December 2024
Coupon 1.750%, Fixed, Annual, 30/360, short first
Re-offer Price 99.876%
Re-offer Yield 1.776% Annual / 1.768% Semi-Annual
Re-offer vs Mid Swaps +20 bps
Re-offer vs Benchmark +18.7 bps over CT5
Lead Managers Citi, HSBC, JPM, Rabobank

Issuer:                                      FMO (The Dutch Entrepreneurial Development Bank)
Rating:                                      AAA/AAA (Stable/Stable)
Issuer Size:                               USD 500m
Payment Date:                          24th October 2019
Maturity Date:                           12th December 2024
Coupon:                                   1.750%, Fixed, Annual, 30/360, short first
Re-offer Price:                           99.876%
Re-offer Yield:                           1.776% Annual / 1.768% Semi-Annual
Re-offer vs Mid Swaps:              +20 bps
Re-offer vs Benchmark:             +18.7 bps over CT5
Lead Managers:                        Citi, HSBC, JPM, Rabobank

On Thursday, 17th October 2019, the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch Entrepreneurial Development Bank, rated AAA/AAA, stable outlook by S&P and Fitch priced a successful USD 500 million Reg S long 5-year fixed rate no-grow benchmark.  The benchmark offers a 1.750% coupon and a spread of +18.7 bps over Treasuries, equivalent to +20 bps over mid-swaps.

Joint Lead Managers on the deal were Citi, HSBC, JPMorgan and Rabobank.

The long 5-year transaction represents FMO’s second US Dollar denominated benchmark of 2019, following on from a very successful new 5-year Green USD benchmark launched back in February.

The mandate was announced Wednesday afternoon in USD 500 million with Initial Price Thoughts (IPTs) of ms+20a. Books formally opened first thing Thursday morning with Price Guidance unchanged from IPTs, and grew steadily to in excess of USD 500 million by ~ 11:30am CET. The transaction priced at 16.00 CET with books in excess of USD 500million.

Distribution statistics

The reward for FMO's broad investor work was reflected in the transaction's high quality and granular orderbook. The book was dominated by Banks who took 74% of the allocations, followed by Central Banks and Official Institutions (19%) and Asset Managers (7%). Investors based in the UK received 38% of allocations, followed by supportive investors in Scandinavia (23%), Other European Countries (16%), Africa (10%), Benelux (8%) and Asia (5%).

Geography Investor Type

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