The World Bank today launched its seventh public offering of Luxembourg franc bonds in the Luxembourg capital market for an aggregate amount of LUF 1 billion (about US$29 million). The 5-year Luxembourg Franc bonds, which have a bullet maturity, carry a 9-3/4 percent coupon and are priced at 101.50 percent for a contractual yield of 9,15 percent on a semi-annual equivalent basis. The bonds will mature on March 22, 1995.
BANQUE INTERNATIONALE A LUXEMBOURG S.A. lead-managed the issue with an underwriting group consisting of Luxembourg domiciled banks.
The proceeds of this issue will be swapped into US dollars which will be used in the general operations of the World Bank.