MICROCAPITAL BRIEF: The Netherlands’ FMO Issues $568m Bond to Finance Green, Financial Inclusion Investments

The Netherlands Development Finance Company, a government-backed institution also known by its Dutch acronym FMO, recently completed a fixed-rate bond issue totaling EUR 500 million (USD 568 million) to fund projects including “climate change mitigation (renewable energy and energy efficiency) and climate change adaptation, as well as inclusive finance projects (microfinance and [small and medium-size enterprise] financing).” The bonds carry a coupon rate of 0.125 percent and mature in June 2023. Rating agencies Fitch and S&P gave the bond issue a rating of AAA.

The vision of FMO is to help abolish extreme poverty, increase equality and support measures that reduce climate change. It has total assets of EUR 8.5 billion (USD 9.5 billion) and profit before taxes of EUR 219 million (USD 245 million) for the year 2016.

By Sascha Strobl, Research Associate

Sources and Additional Resources:

FMO press release:
https://www.fmo.nl/news-detail/466dcc6e-e28e-448e-85d7-b0e6e1a65dbb/fmo-successfully-issued-its-third-eur-500-million-6-year-sustainability-bond

Netherlands Development Finance Company (FMO):
https://www.fmo.nl/

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