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PRESS RELEASE March 18, 1987

World Bank Offers Zero-Coupon Issue in the Euromarkets

The World Bank today offered its first public issue of Australian dollar zero-coupon notes in the Euromarkets. The notes have a face value of A$150 million (US$103 million) producing immediate gross proceeds of A$79.S million (US$54.6 million). The proceeds were swapped into Deutsche marks on a fully matched basis. This is the World Bank's third issue of Australian dollar notes, and the first to be structured as a zero-coupon transaction.

The notes will be repaid on April 15, 1992 and will be non-callable. The yield to investors will be 13.54 percent a year on an annual basis.

The issue was lead managed by Hambros Bank Limited and co-lead managed by Orion Royal Bank Limited and Citicorp Investment Bank, in cooperation with an underwriting syndicate of international financial institutions. The notes will be listed on the Luxembourg Stock Exchange.

The proceeds of this issue will be used in the general operation of the World Bank.