Terms of the Transaction
Issuer: FMO (“NEDFIN”)
Ratings: AA+ S&P (stb) / AAA Fitch (neg)
Size: USD 500 million
Coupon: 3m USD Libor plus 16 bps
Format: Floating rate note / RegS
Issue Date: 3 June 2014
Maturity Date: 12 June 2017
Tenor: 3 years Re-offer
Price: 100.00%
Denominations: USD 1k
ISIN: XS1075175619
Joint Bookrunners: Daiwa Capital Markets, HSBC and J.P. Morgan
Transaction Highlights
On Tuesday, 3rd June 2014, the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch development bank, has priced a successful USD 500 million RegS FRN benchmark. This transaction is FMO’s third benchmark issue in the US Dollar market (and its first since receiving a second rating from Fitch), following a USD 500 million 3-year FRN in 2012 and a USD 500 million 5-year fixed rate trade in 2013. This transaction highlights FMO’s commitment to maintaining a regular presence in the US Dollar market as the issuer continues to build its investor base across currencies.
The mandate for a new USD 500 million (no grow) 3-year FRN issue was announced just after 2pm London time on Monday 2nd June, with indications of interest collected at initial pricing thoughts of 3m USD Libor plus high teens. The transaction met with a positive initial response from investors, with the IOI book already oversubscribed at USD 600 million when books were formally open at 8.25am on Tuesday. At this time, initial guidance was refined to 3m USD Libor plus 16 bps area.
The orderbook continued to build over the course of the day, with books closing in excess of USD 900 million at 9am New York time. The transaction was priced at 3m USD Libor plus 16 bps at 10am NY time / 3pm London time on Tuesday.
Distribution
More than 25 investors participated in the transaction (more than half of which were new investors in the FMO name), with official institutions accounting for approximately 50% of the allocations. Investor demand by region (25+ orders) Investor demand by type (25+ orders)
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About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO is 51% government owned, with strong government support via its support agreement with the Dutch state.
For further details please contact:
Huib-Jan de Ruijter (Financial Markets Director)
Tel +31 70 3149531
E-mail h.de.ruijter@fmo.nl
Arthur Leijgraaff (Senior Treasury Officer)
Tel +31 70 3149852
E-mail a.leijgraaff@fmo.nl
