Published: May 2, 2019
FMO takes first dip in green bond pool
Dutch development bank FMO printed its first ever green bond in the first quarter, with the deal helping promote the nascent offshore US dollar green market.
FMO, rated Aaa/AAA, printed a new $500mn five year green bond in February. The deal came at 17bp over mid-swaps, equal to 25.6bp over the on the run five year US Treasury.
Although this was FMO’s first green bond, the issuer has been active in the sustainability bond market, printing three euro denominated and one Swedish krona deal.
“Last year,” Matthijs Pinxteren, director of treasury at FMO, told EMEA Finance, “we changed our sustainability bond framework so that we can now issue green bonds, social bonds and a combination of the two – we hope to develop social bonds as well.”