WASHINGTON, D.C., January 19, 1999 --- The International Finance Corporation today launched a Euro 60 million borrowing (approximately US$69.7 million) issued under its Global Medium Term Note program.
The 20-year notes are of an inverse floater nature with the coupon as follows: year 1: 13.50 percent, years 2 to 8: 4 percent and years 9 to 20: inverse coupon of 8.00 percent minus (12 month EURIBOR times 365 divided by 360) with minimum coupon zero. The notes are callable at par at the end of year 8 and have an issue price of 101.25 percent. The proceeds of the issue were swapped into US dollar floating rate funds. The joint-lead managers for the issue are Lehman Brothers and Banca Commerciale Italiana (BCI). Nine other banks active in the Italian retail market form part of the syndicate.
This transaction represents the 24th borrowing for the fiscal year which began on July 1, 1998, and brings IFC's market borrowings for FY99 to about US$3,590 million. 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.
