The World Bank and a syndicate of German banks, headed by the Deutsche Bank AG, as manager, and the Dresdner Bank AG, the Commerzbank AG, and the Westdeutsche Landesbank Girozentrale, as co-managers, signed today an agreement covering a new issue of bonds in an aggregate principal amount of DM 200 million (approximately U.S.$ 71 million at current exchange rates). The issue bears interest at the rate of 8% per annum, payable annually on February 15, and will be offered publicly at 99.50%. The bonds will be repaid at par on February 15, 1994 and will be non-callable. The bonds will be listed on all German stock exchanges. This will be the World Bank's 44th public issue in the German capital markets.
The World Bank also signed today an agreement with the Deutsche Bank AG, Dresdner Bank AG, Commerzbank AG and Westdeutsche Landesbank Girozentrale for a private placement of Deutsche Mark Notes in the principal amount of DM 100 million. The interest rate on the Notes is 7 3/4% per annum, payable annually on February 15. The issue price is 99.50%. The Notes will be repaid at par on February 15, 1989 and will be non-callable.
The proceeds of these two issues will be used in the general operations of the World Bank.
Including these issues, the World Bank's outstanding Deutsche Mark obligations, consisting of both public and private borrowings, aggregate approximately DM 19.9 billion (approximately U.S.$ 7.1 billion at current exchange rates).