The World Bank today launched a public offering of Italian lira bonds in the Euromarket for an amount of Lire 500 billion (about US$401 million). The 10-year Eurolira bonds, which have a bullet maturity, carry a 10.40 percent coupon and are priced at 101.575 percent for a contractual yield of 9.90 percent on a semi-annual equivalent basis. The bonds will mature on May 21, 2002.
The underwriting group, which is lead-managed by Instituto Bancario San Paolo di Torino with Banca Euromobiliare and Banco di Napoli as joint lead-managers, consists primarily of banks from Italy and other European countries.
The proceeds of this issue will be swapped into Deutsche mark which will be used in the general operations of the World Bank.