Terms of the transaction
Rating: AA+ (Stable) S&P / AAA (Stable) Fitch
Issue amount: EUR 500mn
Pricing Date: 28 October 2015
Maturity Date: 04 November 2020
Coupon: 0.125% (ann.)
Format: Fixed rate note / RegS
Re-offer Price: 99.861%
Re-offer Yield: 0.153% (ann.)
Re-offer vs. m/s: -6 bps,
Re-offer vs Bund: +29.6 bps
Lead Managers: HSBC, J.P. Morgan
For more information about FMO, please visit: www.fmo.nl/investor-relations
Transaction Highlights:
•On Wednesday 28th October 2015, the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the international development bank of the Netherlands rated AA+ (stable) by S&P and AAA (stable) by Fitch, launched and priced it’s new EUR 500 million 5-year RegS transaction, the issuer’s first Euro transaction in non-SRI format.
•With a strong Euro market backdrop and investors looking for further quality agency paper on the back of size constraint previous supply, FMO announced its EUR 5-year bond on Tuesday 27th October 2015 at 13.00 London time with Initial Price Thoughts (“IPTs”) of MS-5 area.
•Books were officially opened on Wednesday London morning in line with IPTs at the initial guidance of MS-5 area. With good momentum books surpassed the EUR 500 million mark quickly. •Demand continued to grow, and on the back of the high quality interest exceeding EUR 650million and the limited size demand for a EUR 500 million “no grow” transaction, the execution timing was accelerated.
•The spread was fixed at tightened pricing of MS-6 bps by 10.30 am London time due to the quality and limited price sensitivity of demand, and pricing targeted for midday London time.
•Priced at 12.30 London time on Wednesday, the issue pays an annual coupon of 0.125% and has an issue price of 99.861% to give a spread of MS-6 bps which equates to +29.6 bps over the OBL 172 due Oct-2020.
Distribution
•Approximately 30 investors were involved, highlighting the broad support for FMO and the growing interest of investors for high quality Dutch credit, especially taking into account the long-term commitment and strong financial backing of the Dutch State to FMO.
•Participation was European denominated (86%), with highest interest from Benelux (27%) and Germany/ Austria (27%), followed by the Nordic region (16%), MEA (12%), France (10%), UK (6%) and Asia (2%). The distribution balanced across the various types of investors, with the majority split up between Banks (36%), Central Banks/ Official Institutions (33%) and Asset/ Fund Managers (29%).
HSBC and J.P. Morgan acted as joint-bookrunners on this Euro transaction.
Investor demand by type
Investor demand by region
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% government owned, with strong government support via its support agreement with the Dutch state.
For further details please contact:
Matthijs Pinxteren (Treasury Director) 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
