The World Bank has issued DM 150 million (about US $82 million) of 5-year bonds with embedded currency options. Interest payments and repayment of principal will be in Deutsche Mark or U.S. dollars at a predetermined exchange rate of DM 1.70 per U.S. dollar at the option of the World Bank. The bonds carry an annual coupon of 9 percent and are priced at 100.50 percent for a yield of 8.87 percent on an annual basis (or 8.68 percent on a semiannual coupon equivalent basis). The bonds, which are noncallable, will be repaid at par on December 13, 1994.
Conunerzbank Aktiengesellschaft is the sole lead-manager for this transaction. The issue will be listed on the Frankfurt Stock Exchange.
Proceeds of this issue will be used in the general operations of the World Bank.
