The World Bank announced today that it plans to launch its third U.S. dollar global bond issue in the coming weeks. The new issue, which will be between $1.5 and $2.0 billion in size, follows the World Bank's highly successful first two global issues in September of 1989 and February of 1990. The new issue will be underwritten and distributed simultaneously in the Euromarkets, the U.S. and the Japanese domestic markets. As with the prior issues, these securities are designed to trade globally, on a 24-hour basis, through integrated clearing systems in the U.S. and the Euromarkets.
In preparation for the issue the Bank announced the formation of the management group of investment dealers that will bring the issue to market. This management team consists of Credit Suisse First Boston Limited, Daiwa Securities, Deutsche Bank Capital Markets Group
Goldman, Sachs & Co., IBJ International Limited, J.P. Morgan Securities, Inc., Lehman Brothers, Merrill Lynch Capital Markets, Morgan Stanley & Co., Incorporated, The Nikko Securities Co., (Europe} Ltd., Nomura Securities, Paribas Capital Markets Group, S.G. Warburg Securities, Salomon Brothers Inc., and UBS Phillips & Drew Securities Limited Deuteche Bank and Salomon Brothers will serve as joint lead managers.
World Bank Vice President and Treasurer Donald C. Roth stated that this transaction is intended to further strengthen the attractiveness to the market of the Bank's global bond concept. Mr. Roth noted, "The first two global bond issues tapped substantial investor interest around the world and provided an instrument unique in its combination of credit standing, global distribution and liquidity." He added, "Each new issue benefits from our enhanced knowledge of investor preferences regarding primary distribution and liquidity. We expect the upcoming issue to be a great success by demonstrating the Bank's ability to continuously tailor it products to meet investor’s needs."