The World Bank signed today the largest syndicated loan it has ever transacted in the Swiss market in an aggregate principal amount of SwF 750 million (about $455 million). The borrowing was signed with a syndicate of Swiss banks and a group of foreign banks and finance companies domiciled in Switzerland and Liechtenstein.
The World Bank borrowing consists of two tranches: Tranche is for SwF 500 million and has a maturity of five years, an interest rate of 5-1/4 percent and a price of 100, for a semi-annual equivalent yield of 5. 18 percent; Tranche B is for SwF 250 million and has a seven-year maturity, an interest rate of 5-3/8 percent and a price of 99.875, for a semi-annual equivalent yield of 5.33 percent.
The banking syndicate is led by Credit Suisse with Union Bank of Switzerland and Swiss Bank Corporation as co-lead managers, and with Banca della Svizzera Italiana, Bank Leu Ltd., Swiss Volksbank, Banca del Gottardo, HandelsBank N.W. and Banque Cantonale de Zurich as co-managers.
The proceeds of this issue will be used in the genera1 operations of the World Bank.
