Issuer: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO)
Format: Reg S, Bearer, New Global Note
Amount: USD 500 million
Settlement date: 10 October 2024 (T+5)
Maturity date: 10 October 2029
Spread: SOFR MS+45 basis points
Coupon: 3.750%; Annual, 30/360, Unadjusted
Coupon Payment Dates: 10 October each year beginning on 10 October 2025 and ending on the Maturity Date Listing: Luxembourg Joint-Lead Managers: Citi, Crédit Agricole CIB, J.P. Morgan SE, Rabobank
On Thursday, 3rd October 2024, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), rated AAA/AAA (S&P/Fitch), priced a new USD 500 million 5-year senior unsecured benchmark at SOFR Mid Swaps plus 45 basis points, down from Initial Price Thoughts (“IPTs”) of SOFR Mid Swaps plus 47 basis points area. FMO demonstrated an effective market read to successfully navigate renewed volatility on the back of rising tensions in the Middle East and capitalise on the strength of the USD market.
The transaction represents FMO’s second fixed-rate USD benchmark of the year and follows on from its USD 500 million 5-year Green Bond last June.
The issue carries an annual coupon of 3.750% and will mature on 10th October 2029. It was priced with a spread of 15.3 basis points over the CT5 Treasury note, equivalent to SOFR Mid Swaps plus 45 basis points. The pricing translates to a re-offer yield 3.746% semi-annual / 3.781% annual. The mandate for a new 5-year USD 500 million No Grow Green Bond was announced on Wednesday, 2nd October at 12:40 pm UKT, along with IPT levels of SOFR MS+47 basis points area.
Indications of interest (“IOIs”) grew to more than USD 425 million, and books officially opened on Thursday, 3rd October at around 8:10 am UKT, with price guidance unchanged from IPTs of SOFR Mid Swaps plus 47 basis points area.
Order book momentum accelerated throughout the course of the European morning, and by 9:50 am UKT, orders stood in excess of USD 650 million (excluding JLM interest), allowing for a revised guidance at SOFR MS plus 46 basis points, 1 basis point tighter than IPTs. An hour later, at 10:55 am UKT, final terms were announced with the spread set 2 basis points tighter than IPTs at SOFR MS plus 45 basis points, with orders in excess of USD 770 million (excluding JLM interest). Books closed shortly after at 11:30 am UKT with final orders over USD 800 million (excluding JLM interest). The deal was priced at 2:25pm UKT.
The book was highly diversified across regions, with Switzerland-based investors taking the lion’s share with 25% of allocations, followed by UK/Ireland at 19%, Americas 17%, Luxembourg 13%, Asia 12% and Rest of Europe / Nordics at 7% each. The orderbook was also highly qualitative with Banks and Bank Treasuries taking 47% of allocations, closely followed by Central Banks & Official Institutions with 46% and finally Asset Managers / Pensions / insurance at 7%.
The broad and global distribution of this transaction is a testament to FMO’s support within the global investor community.
The green bond proceeds are used to support loan disbursements and equity investment to our clients into year end.
This transaction was jointly managed by Citi, Crédit Agricole CIB, J.P. Morgan SE, and Rabobank.
