The World Bank and a syndicate of German banks signed today an agreement covering a new issue of bonds in an aggregate principal amount of DM 300 million (approximately US$103 million at current exchange rates). The issue bears interest at the rate of 8-1/8% per annum, payable annually on September 1, and will be offered publicly at par. The bonds will be repaid at par on September 1, 1994 and will be non-callable.
The syndicate for this 47th public issue of the World Bank in the German capital markets is headed by the Deutsche Bank AG, as manager, and the Dresdner Bank AG, the Commerzbank AG, and the Westdeutsche Landesbank Girozentrale, as co-managers. The bonds will be listed on all German stock exchanges.
The proceeds of this issue will be used in the general operations of the World Bank.
Including this issue, the World Bank's outstanding Deutsche Mark obligations, consisting of both public and private borrowings, aggregate approximately DM 20.9 billion (approximately US$7.2 billion at current exchange rates).