The World Bank announced today its first Swedish kronor borrowing in 13 years, a SKr 300 million ($42.9 million) public bond issue. Priced at par with a 9.60 percent coupon, the 7-year bonds will yield 9.38 percent on a semi-annual equivalent basis. The sole manager for this issue is PKbanken.
The Bank will swap the proceeds of the issue with the Kingdom of Sweden for Swiss francs. Swaps enable the World Bank to lower its average nominal cost of medium and long-term borrowings and thereby the cost of funds available for lending to developing countries.
This issue is the third public offering of bonds by the Bank in the Swedish capital market. The Bank’s two previous Swedish kronor borrowings were made in 1967 and 1973. Each of those borrowings was for SKr 75 million.
The proceeds of the issue will be used in the general operations of the World Bank.