Green Bond Fact Sheet

FMO

Date: 16-Apr-2019

Issue date: 20-02-2019 Maturity date: 20-02-2024 Tenor: 5Issuer Name

Netherlands
Development Finance
Company (FMO)

Amount Issued

USD500m

Country of risk

Netherlands

CBI Database

Included

Issuer Type1

Development bank

Bond TypeSenior unsecured

Green Bond Framework

Link to framework

Second party opinion

Sustainalytics

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☒ Solar☒ Onshore wind
☒ Offshore wind
☒ Geothermal☒ Hydro☒ Tidal☒ Biofuels☒ Bioenergy☐ District heating☒ Electricity grid

☐ Energy storage☒ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☒ Certified Buildings☒ HVAC systems☒ Energyperformance☐ Water performance☐ Energy storage/meters☒ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☒ Electric vehicles☒ Low emission
vehicles☒ Bus rapid transit☒ Passenger trains☒ Urban rail

☐ Freight rolling stock☒ Coach / public bus☐ Bicycle infrastructure☒ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☐ Water distribution☐ Water treatment☒ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☒ Waste management☒ Recycling☐ Waste prevention☒ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☒ Waste to energy☐ Industry: components☐ Adaptation & resilience☒ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☒ Land remediation☒ Energy/water efficiency☒ Sustainable agriculture☐ Adaptation & resilience☒ Other☒ Adaptation &resilience☐ ICT☒ Industry: process

Issue details
Reporting

FMO commits to reporting to stakeholders annually. Then reporting will be produced inaccordance with the Green and Social Bond reporting templates published during the Green
Bond Principles (GBP) 2018 Annual General Shareholder Meeting. The annual investor
newsletter will include allocation reporting with the following details:• Allocation of use of proceeds for new and existing projects on a portfolio basis, basedon the outstanding portfolio and 85% of the committed (non-disbursed) project
portfolio, per region, MDB category and subcategory
Impact reporting will comprise:• Estimated annual GHG emission reduction from direct green investments on a portfolio
level, and the estimated number of (in)direct jobs supported per target group

Company information

FMO was established in 1970. Its core mission is to empower entrepreneurs in emerging
markets. It invests with the aim of enhancing local prosperity in places where this is needed
most. In addition to financing, FMO challenges businesses to meet international standards
on the welfare of people, corporate governance and the environment.

Firsts, records andcertifications

This is the inaugural green bond from a development bank in the Benelux region.

Proceeds description

FMO will finance three broad categories of activities. These are defined as follows:•••

Climate Change Mitigation: Activity contributes to either reducing or sequesteringgreenhouse gas (GHG) emissions. If the activity relates to energy efficiency, aminimum 20% reduction in energy consumption or GHG emissions is required. Theactivities under this category are classified under energy efficiency in industrial
equipment/machinery or in buildings; renewable energy; transport; agriculture,
forestry and land use; waste and wastewater; and cross-sector activities. A full list
is available on p. X of the Framework.
Climate Change Adaptation: An activity with the intention of reducing thevulnerability of human or natural systems to the impacts of climate change andclimate-related risks by maintaining or increasing adaptive capacity and resilience.
Some examples include climate smart agriculture, increasing biological diversity,
fisheries co-management and controlling overfishing, and adaptive land usemanagement.
Other Footprint: This category includes those activities that do not directly target
climate change mitigation or adaptation but still have a positive impact on theenvironment (e.g. water, waste and biodiversity).

The climate-related categories are defined in line with the Multilateral Development Banks(MDBs) report for Climate Finance Tracking.

Climate Bonds view

It is good to see further MDB issuance from Europe. FMO’s framework is extensive andambitious and includes specific definitions, targets and guidelines for each eligible project
category. The issuer has also followed market best practice by obtaining an external review,
as well as making the commitment to annual post-issuance reporting on both the use ofproceeds as well as the impact of investments. For impact reporting, FMO has disclosed amethodology already at issuance, which is rare to see.

Underwriters

Bank of America Merrill Lynch, Citi, Credit Agricole, HSBC

Deal comments
Credit Rating

Fitch: AAA, S&P: AAA

Pricing summary

Reoffer price: 99.950% / 2.742% (s.a.), 2.761% (annual); reoffer spread: mid-swaps + 17bps

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign