Washington, DC, September 21, 2005 - The World Bank announces that the syndicate has been formed for its Euro 75 million Italian domestic bonds linked to constant maturity swap rates.
The Italian investor base continues to show interest in structured notes. This issue provides a further opportunity for investors to buy the World Bank’s name in such a format. As domestic Italian notes, they will be governed by Italian law and will primarily clear and settle through Italy’s local system.
The bonds are offered by Morgan Stanley & Co International Limited as the lead manager, and the following syndicate members: Banca Antoniana Popolare Veneta S.p.A., Arca Banca di Investimento S.p.A., Banca Cesare Ponti, Banca Finnat Euramerica, Bank Insinger de Beaufort, Banca Popolare dell’Alto Adige, Banca Popolare dell’Emilia Romagna, and Banca Popolare di Sondrio.
A summary of the terms is as follows:
Amount: EUR 75 million
Settlement Date: 7 October, 2005
Maturity: 7 October, 2025
Issue Price: 100%
Coupon: For year 1, the coupon is 5.50%. For years 2 to 3 the coupon is 4.00%. For years 4 to 20, the coupon rate is recalculated annually before the start of each interest period, based on the following formula: 5 * ( 10y_CMS - 2y_CMS ), whereby 10y_CMS and 2y_CMS is the 10-year and 2-year constant maturity swap rate, respectively. The minimum coupon rate is 0%.
Redemption Amount: 100% of par plus an additional coupon payment amount of 40% minus the total amount of all coupons already paid (or zero, if the total of all coupons already paid is 40% or higher)
Denomination: EUR 1,000
Governing Law: Italian
Listing: Italy MOT (to be applied for)
Type: Italian Domestic
ISIN Code: IT0006596701
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 bonds, communication to investors regarding, rate of interest, interest amount, and additional redemption 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 http://treasury.worldbank.org, and a list of frequently asked questions is available for Italian investors at https://treasury.worldbank.org/faqs/italiano.