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 500 million (approximately US$157 million at current exchange rates). The issue bears interest at the rate of 7-1/4% per annum, payable annually on February 1, and will be offered publicly at 99.50%. The yield to subscribers will be 7.32% on an annual basis. The bonds will be repaid at par on February 1, 1995 and will be non-callable.
The syndicate for this 50th 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 Hark obligations, consisting of both public and private borrowings, aggregate approximately DM 23.3 billion (approximately US$7.3 billion at current exchange rates).