The World Bank announced the launching today of a Pts. 10 billion (US$ 99.5 million equivalent) public bond offering in the Spanish peseta market. The bonds have a 5-year maturity, an annual coupon of 11-3 / 4 percent and an offering price of 101.40, for a yield of 12.93 percent on a semiannual equivalent basis.
The issue will be placed by an underwriting syndicate lead managed by Banco Espanol de Credito and J.P. Morgan. The bonds constitute the ninth issue launched by the World Bank in the Spanish peseta market and will be listed on the Madrid Stock Exchange. International clearance of the bonds will be provided by CEDEL and EUROCLEAR.
The proceeds of this issue will be swapped for Deutsche mark which will be used in the general operations of the World Bank.