The World Bank announced that it launched today in Tokyo a Yen 70 billion (about US$ 480 million equivalent) public offering of "Daimyo" bonds. The bonds will pay 5.25 percent interest annually. The bonds have an issue price of 100.75 and a final maturity on September 20, 1999, giving a yield of 5.087 percent on a semi-annual coupon equivalent basis.
The offering, which is non-callable, is being made through a syndicate led by Daiwa 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. Further, the issue can be reopened and enlarged by future offerings having the same maturity and coupon rate.
The proceeds of the issue will be used in the general operations of the World Bank.