The World Bank announced that it launched today in Tokyo a Yen 50 billion (about US$ 402 million) public offering of "Daimyo" bonds. The bonds will pay 5 percent interest annually. They are priced at 101 and have a final maturity on December 28, 1998 for a yield of 4.81 percent on a semi-annual coupon equivalent basis.
The offering, which is noncallable, is being made through a syndicate led by Nomura Securities Co., Ltd.
The Daimyo bonds have special features designed to enhance the issue's liquidity. These include the settlement of trades through international book entry clearance systems and listing on the Luxembourg Stock Exchange. Also, trading of this issue will be possible through the facilities of the Japan Bond Trading Company, Ltd. (the Broker's Broker) in Tokyo, which is the principal broker for trading of Japanese government bonds. This Daimyo issue will be the first by a non-resident borrower to be handled by the Broker's Broker.