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PRESS RELEASE April 26, 1989

World Bank Issues First EuroCanadian Dollar Zero Coupon Issue

The World Bank today issued its first Canadian dollar zero coupon issue in the Euromarkets. The 7-year notes have a face value of Can$ 200 million (about US$ 168 million), producing immediate gross proceeds of Can$ 101.9 million (US$ 85.6 million). The notes were priced at 50.95 for a yield of 9.87 percent on a semi-annual equivalent basis. The notes will be repaid on May 30, 1996 and are noncallable.

The World Bank has agreed to swap the proceeds of this transaction into a zero-coupon U.S.-dollar liability.

The international syndicate for this issue is headed by Banque Paribas Capital Markets Limited as lead manager, Wood Gundy Inc. and the Royal Bank of Canada Dominion Securities International Ltd as well as Banque Bruxelles Lambert SA and Generale Banque as co-lead managers. They were joined by ASLK-CGER Bank, Bank of Montreal Capital Markets, Banque Generale de Luxembourg, Banque Internationale a Luxemburg, BNP Capital Markets, Credit Commercial de France, Credit Lyonnais, Credit Suisse First Boston, Deutsche Bank Capital Markets, International Bank of Japan, Kredietbank, Merrill Lynch International Ltd, Morgan Stanley International, Societe Generale, Swiss Bank Corporation, UBS Phillips & Drew Securities Limited and Westdeutsche Landesbank Girozentrale as comanagers.

The transaction is the second euroCanadian dollar borrowing by the World Bank under its fiscal year 1989 borrowing program.