WASHINGTON, D.C., Jan. 30-The International Finance Corporation (IFC) earlier this week launched an equity-linked Italian Lira denominated note under its Euro Medium Term Note Program. The issue, listed on the Luxembourg stock exchange, raised US$94 million equivalent for IFC and has been swapped to floating rate US dollars.
The bond, a zero coupon issue, has a minimum principal redemption of 100 percent of the face value, with the maximum principal redemption linked to the appreciation of the Milan Stock Exchange Index (MIB-30).
The bond issue has a final maturity of three years and has been sold to investors at 100.90 percent of face value. The issue will benefit from increases in the MIB-30, and is expected to be purchased by Italian investors who wish to participate in its appreciation while protecting the underlying principal and guaranteeing a minimum return of 10 percent at redemption.
The notes have been jointly underwritten by Citibank International PLC and CARIPLO. A group of 14 additional institutions completed the underwriting syndicate.
IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector companies in developing countries. Its long-term debt is rated triple A by both Standard & Poor's Corp. and Moody's Investors Service.
