WASHINGTON, D.C., October 28, 1998 --- The International Finance Corporation today launched an Italian Lira 100 billion (about US$61 million) step-down reverse floating rate note issued under its Global Medium Term Note program.
The 15-year notes with a yearly call option starting at the sixth year, carry a coupon of 14 percent for the first year; 6 percent for the second year; 5 percent for year 3; 4.5 percent for year 4; 4 percent for year 5; and for the final period, years six through fifteen, the coupon is either 5 percent or 8 percent minus 12-month ITL Libor at the issuer's option. The notes were issued at a price of 101.25 percent of par. The proceeds of the issue have been swapped into US dollar floating rate funds.
The joint lead managers for the issue were Credit Suisse First Boston and Banca Nazionale del Lavoro. The funds which IFC raises in the international capital markets are used to support the operations of IFC, including funding its lending operations.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses. Its long-term debt is rated triple-A by both Standard & Poor's and Moody's Investors Service.
