The World Bank announced today it plans to launch a new U.S. dollar global bond issue this week. The size of the issue, to be announced prior to launch, is expected to be from $1.0 to $1.5 billion. The bonds will be noncallable to final maturity.
Market conditions permitting, this issue will have a maturity of thirty years and thus would have the longest term of any Bank global issue. The Bank's previous U.S. dollar global bonds have had maturities of five to ten years. This issue also would represent the longest U.S. dollar public offering by the Bank in any market since 1987.
"This transaction is a logical step in the development of the Bank's global bond program" according to Kenneth G. Lay, Director of the Bank's Financial Operations Department. "This issue will be the first global deal to offer non-U.S. investors access to long-dated dollar paper in the U.S."
The issue will be underwritten and distributed simultaneously in the Euromarkets, in the U.S., and in the Japanese domestic markets. As with 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 global bond issue the World Bank announced the formation of the international management group of eight investment dealers that will bring the issue to market. CS First Boston Group and Goldman, Sachs & Co. will serve as joint book running lead managers. The other members of the management team are Deutsche Bank Capital Markets Limited, IBJ International Limited, Lehman Brothers, Merrill Lynch & Co., Nomura Securities, and Salomon Brothers Inc.