Our Sustainability Bonds Framework allows us to issue Sustainability, Green and Social bonds that support FMO's lending to green projects and social projects aimed at reducing inequality.
We believe in a world in which, in 2050, nine billion people will live well and within the means of the planet’s resources. To achieve this vision, our strategy calls on us to create a higher impact portfolio, deepen our relationships and increase productivity. In doing so, we focus on three Sustainable Development Goals (SDGs):
Our strategy is aligned with the Investing in Global Prospects policy of the Dutch Ministry of Foreign Affairs, one of our key stakeholders. This policy aims to tackle the root causes of poverty, migration, terrorism, and climate change, while enhancing The Netherlands’ international earning capacity.
The FMO Sustainability Bonds Framework was updated in December 2018 in order to (i) include new categories for green and social projects, with corresponding eligibility criteria in the use of proceeds, and (ii) allow FMO to issue Green Bonds, Social Bonds or Sustainability Bonds to support FMO’s Strategy.
We will use the proceeds to finance, in whole or in part, existing and future projects that have a positive environmental impact and social projects aimed at reducing inequality.
With the issuance of Green and Social Bonds, we will strengthen the development of the Green and Social Bond market. Through these bonds, we provide investors the opportunity to support FMO’s green and inclusive lending in emerging markets, while benefiting from FMO’s AAA credit rating. In addition, investors will receive a strong social impact return (GHG emissions avoided, jobs supported) through FMO’s investments.
Since 2012, FMO has been active in the thematic bond market with the issuance of Sustainability Bonds. FMO has developed a leading role as an established issuer in the Sustainability Bond market, as we have successfully issued 3 Sustainability Bonds in EUR (€500 million each) and 1 in SEK (SEK 2.7 billion).
|2013||EUR 500 mln, 0.125% 13/11/2018 (Sustainability)||5 year|
|2015||EUR 500 mln, 0.125% 20/04/2022 (Sustainability)||7 year|
|2017||EUR 500 mln, 0.125% 01/06/2023(Sustainability)||6 year|
|2020||EUR 500 mln, 0.125% 01/04/2027 (Sustainability)||7 year|
|2016||SEK 2,700 mln, 0.75% 29/11/2023 (Sustainability)||7 year|
USD 500 mln, 2.75% 20/02/2024 (Green)
SEK 1,500 mln, 0.86% 27/03/2028 (Green)