Transaction summary:
| Issuer: | FMO (The Dutch Entrepreneurial Development Bank) |
| Rating: | AAA (stable) by S&P / AAA (stable) by Fitch |
| Size: | USD 500 million ‘no-grow’ |
| Pricing Date: | 22nd January 2025 |
| Settlement Date: | 29th January 2025 |
| Maturity: | 26th April 2028 |
| Coupon: | 4.500% |
| Re-offer Spread to SOFR MS: | +35 bps |
| Re-offer Spread to Treasuries: | +13.7bps |
| Re-offer Price: | 99.940% |
| Re-offer Yield: | 4.461% s.a./ 4.511% a. |
| Lead Managers: | BofA Securities, BNP Paribas, HSBC, RBC Capital Markets |
Transaction highlights:
• On Wednesday 22nd January 2025, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), rated AAA/AAA (S&P/Fitch), priced a successful USD 500 million ‘no-grow’ 3-year senior unsecured benchmark at SOFR MS+35bps from Initial Price Thoughts (“IPTs”) of SOFR MS+39bps area, and Guidance of SOFR MS+37bps area.
• The successful transaction represents FMO’s first fixed rate benchmark of the year. For 2025, FMO communicated a Borrowing Programme of about USD 2 billion. The transaction also marks FMO’s largest ever orderbook for a USD benchmark.
• The mandate was announced on Tuesday 21st January at 12am CET with IPTs released simultaneously at SOFR MS+39bps area.
• On the back of strong indications of interest (“IOIs”) in excess of USD 1.5 billion, books officially opened on Wednesday 22nd January March at 9.10am CET, with price guidance of SOFR MS+37bps area.
• The orderbook continued to grow throughout the morning and was in excess of USD 2.2 billion at around 11am CET. Given the high quality and size of the order book, the decision was taken to fix the spread a further 2 basis points tighter at SOFR MS+35bps.
• Despite the spread tightening, the bookbuilding continued with books closing in excess of USD 2.3 billion. The transaction ended up 4.6 times oversubscribed. The transaction ultimately priced at 4.02pm CET at an equivalent spread of +13.7bps over Treasuries and an annual yield of 4.511%.
• In terms of geographical distribution, the transaction was broadly diversified across EMEA (57%), Americas (33%) and Asia (10%). In terms of investor type, Central Banks & Official Institutions were the largest investor component taking 50% of final allocations, supported by strong participation from Banks & Bank Treasuries (48%) and Fund Managers, Insurance & Pension Funds (2%).
• The broad and global distribution of this transaction is testament to FMO’s support within the global investor community.
Distribution statistics:
| By investor region | By investor type |
| EMEA (57%) Americas (33%) Asia (10%) | CB/OIs (50%) Bank/Bk Tsy (48%) FM/Ins/PF (2%) |
