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World Bank is First Non-Resident Borrower of Hong Kong Dollars

The World Bank launched its first Hong Kong dollar borrowing, a HK$ 500 million (US$ 64.3 million) six-year noncallable public bond offering. This is the first Hong Kong dollar borrowing by a non-resident issuer. The Government recently relaxed its policy on access by non-residents to the Hong Kong dollar capital market.

The bonds have an issue price of 100-1/2 and a 10-1/8 percent coupon, payable semi-annually, for a yield of 10.01 percent on a semiannual equivalent basis.

This issue, which will be settled on May 26, 1989, will be placed by an underwriting syndicate lead managed by Sanwa International Finance Limited with Paribas Asia (1986) Limited as co-lead manager. The bonds will be listed on the Hong Kong Stock Exchange.

The proceeds of this issue will be swapped into floating rate US dollars which will be used in the general operations of the World Bank.