news - fmo successfully issues EUR 175 million subordinated notes

On November 30th 2015, FMO successfully issued EUR 175 million of subordinated notes, callable on December 8th, 2020 and maturing on December 8th, 2025. The coupon will be fixed at 1.5% until the call date. Thereafter one-time reset to the prevailing 5 year Mid Swap (MS) rate plus the initial margin for the remaining period until maturity. Fitch assigned an AA+ rating to the subordinated notes.

The issuance of the notes facilitates subordinated lending to FMO’s customers, in particular financial institutions in developing markets and improves FMO’s CET1 ratio.  The notes will be issued under a stand-alone prospectus and will be listed on Euronext in Amsterdam. The prospectus and applicable final terms will be available on www.fmo.nl/investor-relations.

The transaction was mainly driven by domestic Dutch investors, enabling the deal to be upsized from EUR 150 to EUR175 million at MS+140bps, inside original guidance of MS+150bps area. This represents the tightest Tier 2 deal versus Mid Swap this year.

Terms of the transaction
Rating: AA+ (Fitch)
Issue amount: EUR 175 million
Pricing Date: 30 November 2015
Settlement Date: 8 December 2015
Maturity Date: 8 December 2020
Coupon: 1.5% (annually)
Format: Fixed Rate Reset Subordinated Notes (Tier 2) / RegS
Joint Lead Managers and Joint Bookrunners: HSBC, J.P. Morgan

For more information about FMO, please visit: www.fmo.nl/investor-relations

About FMO
FMO is the international development bank of the Netherlands which supports businesses and financial institutions in developing countries with capital and skills as well as managing development funds on behalf of the Dutch government. FMO is 51% owned by the Dutch state, with strong government support via its support agreement with the Dutch state.

For further details please contact:
Matthijs Pinxteren (Director Treasury) Tel +31 70 3149575 E-mail m.pinxteren@fmo.nl
Arthur Leijgraaff (Senior Treasury Officer) Tel +31 70 3149852 E-mail a.leijgraaff@fmo.nl
Ki Bae van Beek (Senior Treasury Officer) Tel +31 70 3149506 E-mail k.van.beek@fmo.nl