WASHINGTON, D.C., Feb. 18—The International Finance Corporation (IFC) launched an IBEX-35 linked issue of four notes on February 11, 1997. The face value of the combined issue was 5.04 billion Spanish Pesetas, equivalent to about 35.7 million US Dollars. The IFC has been a very active issuer in this market over the last few weeks and this is one of several transactions of significance. The four notes in the issue have varying fixed-rate coupons and the principal redemption is linked to the appreciation of the IBEX 35 (Madrid) index. The notes have a final maturity of approximately 4 years and have been issued to investors at 100% of their face value. The issue will benefit from increases in the IBEX 35, and have been purchased by investors who wish to participate in the appreciation while protecting a large part of their underlying principal in case of a downswing. The issue, listed on the Madrid stock exchange, is swapped to floating rate US Dollars.
The notes have been solely underwritten by Banco Central Hispanoamericano S.A.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries. The Corporation’s long-term debt is rated triple-A by Standard and Poor’s and Moody’s Investor Services.
