The World Bank today launched a structured ITL 150 billion public issue of bonds under its Global Multicurrency Note program in the Euromarkets. The bonds which mature on June 28, 2001, were issued at 101.08 %. The coupon is set at 18.5% less ITL 12-month Libor for the first two years. For the remaining five years the coupon on the bond will be either 18.5% less ITL 12-month Libor or ITL six-month Libor flat at the option of the issuer.
This issue is lead-managed by Banca Nazionale del Lavoro. The syndicate included a number of Italian and international financial institutions. The proceeds of this transaction were swapped on fully hedged basis into floating rate DEM to be used in the general operations of the World Bank.