Washington, DC , June 9, 2005 - The World Bank announces that the syndicate has been formed for its Euro 150 million Italian domestic bonds linked to constant maturity swap rates.
The Italian investor base has displayed sustained interest in structured notes, and this issue provides an opportunity for investors to buy the World Bank’s name in such a format. This is the World Bank's first Italian domestic issuance since February 1999. As domestic Italian notes, they will be governed by Italian law. Choosing the Italian domestic format allows the broadest group of Italian buyers to participate in the issue.
The bonds are offered by the joint lead managers Morgan Stanley & Co International Limited and Banca Akros S.p.A. - Gruppo Banca Popolare di Milano, and the following syndicate members: Banca di Legnano S.p.A., Banca Finnat Euramerica, Banca Popolare dell' Alto Adige S.c.a.r.l, Banca Popolare di Milano S.c.a.r.l., Banca Popolare di Sondrio S.c.a.r.l., Centrosim S.p.A., Gruppo Banca Lombarda e Piemontese (which distributes through: Banco di Brescia S.p.A. and Banca Regionale Europea S.p.A.), and Iccrea Banca S.p.A.
A summary of the terms is as follows:
Amount: EUR 150 million
Settlement Date: 24 June, 2005
Maturity: 24 June, 2020
Early Redemption Option: The World Bank may redeem the bonds at par starting June 24, 2008 and on each following payment date.
Issue Price: 100%
Coupon: For years 1 to 3, the coupon is 4.00%. For years 4 to 15, the coupon rate is recalculated annually before each coupon payment, based on the following formula: 4 * ( 10y_CMS - 2y_CMS ), whereby 10y_CMS and 2y_CMS is the 10-year and 2-year constant maturity swap rate, respectively. The minuimum coupon rate is 1.00%.
Denomination: EUR 1,000
Governing Law: Italian
Listing: Italy MOT
Type: Italian Domestic
ISIN Code: IT0006591942
The bonds have been admitted to the dematerialised securities clearing system managed by Monte Titoli S.p.A. An application for the listing of the Bonds on the Mercato Telematico delle obbligazioni e titoli di Stato (M.O.T.), organised and managed by Borsa Italiana S.p.A.will be made. In accordance with the terms of the notes, communication to investors regarding early redemption, rate of interest, and interest amount shall be made through the Monte Titoli S.p.A. system.
Potential investors should refer to the Foglio Informativo, Nota Integrativa and to the Regolamento for a detailed description of the terms and conditions and risk factors of the bonds which the entities appointed for the placement shall make freely available at the request of any such potential investor.
Additional Information on the World Bank is available on the investor website https://treasury.worldbank.org, and a list of frequently asked questions is available for Italian investors at https://treasury.worldbank.org/faqs/italiano.