The World Bank announced today its first borrowing in Finnish markkaa, a Fmk 300 million ($66.2 million) public issue. Priced at 101.125 with a 10 percent coupon, the seven-year notes will yield 9.77 percent on a semi-annual equivalent basis. Interest will be payable semi-annually on each March 11 and September 11, beginning this September. The issue will be listed on the Helsinki Stock Exchange.
Postipankki is the lead-manager for this transaction. The Bank will swap the proceeds of the issue with Postipankki for Deutsche mark. Swaps enable the World Bank to reduce its average nominal cost of medium- and long-term borrowings and, thereby, its lending rate to developing countries.
Proceeds of the issue will be used in the general operations of the World Bank.