Issuer: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO)
Rating: AAA (S&P) / AAA (Fitch)
Format: Reg S, Bearer
Amount: EUR 500 million
Pricing date: 22 September 2026
Settlement date: 29 September 2026 (T+5)
Maturity date: 29 September 2031
Spread: Mid Swaps +5 bps
Coupon: 3.375%; annual
Coupon Payment Dates: 29 September, beginning on 29 September 2027 and ending on the Maturity Date
Listing: Luxembourg
Joint-Lead Managers: BofA Securities Europe SA, ING, J.P. Morgan, and Rabobank
On Tuesday, 22 September 2026, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), rated AAA/AAA (S&P/Fitch), priced a new EUR 500 million 5-year Green benchmark at Mid Swaps (MS) +5 bps.
This transaction marks FMO's first fixed-rate EUR benchmark of the year and its first EUR Green benchmark issuance. The issue carries an annual coupon of 3.375% and will mature on 29 September 2031.
It was priced at a spread of 5 bps over Mid Swaps, equivalent to 22.2 bps over the OBL due October 2031. The pricing translates to a re-offer yield of 3.487%. The mandate for the EUR 500 million 5-year WNG Green benchmark was announced on Monday, 21 September 2026 at 09:30 CET alongside a series of fixed income investor calls beginning on the same day. Following constructive investor meetings, FMO formally announced the transaction on Tuesday, 22 September at 08:55 CET with guidance at MS+8 bps area. Momentum for the transaction was strong throughout the European morning. At 10:05 CET, with order books exceeding EUR 1.6 billion (including EUR 75 million JLM interest), the spread was revised at MS+7 bps area. Books continued to grow, reaching EUR 2.6 billion (including EUR 75 million JLM interest) by 10:50 CET, allowing FMO to announce the final terms of the transaction, setting the spread another 2 bps tighter at S+5 bps.
The deal's final demand exceeded EUR 2.5 billion (including EUR 75 million of JLM interest), spread across 87 accounts, when books closed at 11:15 CET, representing FMOs most successful EUR transaction. Allocations were released at 14:18 CET and pricing followed shortly after at 14:48 CET.
Allocations were highly qualitative, with CB/OIs securing the lion’s share of allocations at 54%, followed by Bank Treasuries who received 23%, Fund Managers at 16%, and finally Hedge Funds at 7%. In terms of regional distribution, allocations were well diversified with 23% of the deal going to Asian investors, followed by UK & Ireland at 15%, BeNeLux and Southern Europe at 14% each, Dach at 9%, France at 7% and others at 18%.
The bond proceeds are reserved for financing and refinancing Green Projects according to the FMO Sustainability Bonds framework.
