The pricing of the World Bank's first global bond offering, a $1.5 billion issue launched yesterday simultaneously in the Euromarkets and the U.S. domestic market, was announced this morning by Donald C. Roth, the Bank's Vice President & Treasurer. The 10-year bonds have an 8-3/8 percent coupon, payable semiannually, and were offered at 99.55 for a yield to subscribing investors of 8.442 percent. The bonds were sold to investors in Asia, Europe and North America in approximately equal proportions.
This is the Bank's largest issue and establishes a new benchmark for World Bank issues in the U.S. and offshore markets. The bonds were offered by an international syndicate of 14 leading sponsors led jointly by Deutsche Bank Capital Markets Limited and Salomon Brothers Inc.
The World Bank is headquartered in Washington, D.C. and has been in operation since July 1946. Its membership comprises 152 governments. The principal purpose of the Bank is to promote the economic development of its member countries in the interest of fostering the long-term growth of international trade and improved living standards. Its principal activity is providing loans and related technical assistance for specific projects and for programs of economic reform in developing countries. From its establishment to June 30, 1989, the Bank had approved loans in the aggregate amount of $172 billion to 104 countries.