The World Bank has issued DM 200 million (about US$ 118 million) of 10-year bonds (Series A bonds). The Bank has the right to redeem the bonds prior to maturity at specified dates, falling 2, 3, 4, and 5 years after issuance. The Series A bonds carry a 9 percent coupon and are priced at 99.5, for a yield of 8.88 percent on a semi-annual coupon equivalent basis.
Simultaneously, the World Bank also has engaged in a cash sale of warrants. The holders of the warrants are entitled to subscribe, at specified dates and at a pre-determined price, to noncallable World Bank DM-denominated bonds (Series B bonds). The Series B bonds will have a coupon and final maturity date that are identical to those of the Series A issue.
The lead manager for these transactions is Commerzbank AG. The bonds will be listed on the Frankfurt Stock Exchange.
Proceeds will be used in the general operations of the World Bank.