FMO issues €500m sustainability bond
Dutch development bank FMO has priced a new €500 million seven-year Reg S sustainability bond at MS+31bps - its first public euro transaction since May 2017.
BofA Securities, Credit Agricole CIB, and HSBC were joint lead managers on the bond, which pays an annual coupon of 0.125%. Strong demand saw books closing in excess of €2.1 billion - FMO’s largest order book to date with participation from around 70 accounts. Proceeds will be allocated within FMO’s Treasury to a special sub-portfolio that will be linked to FMO’s lending operations in the fields of green and social projects, aiming at reducing inequalities .
Eligible green projects include, but are not limited to, investments in: renewable energy projects such as solar, wind, geothermal power and run-of-river hydro; energy efficiency projects in buildings and in industrial equipment; agriculture, forestry and other land use; and responsible agriculture, food production, transport, waste and wastewater projects (including biosphere conservation projects).
Eligible social projects aiming at reducing inequality include microfinance, women owned SMEs, agricultural SMEs, smallholder finance, and youth finance.
