Washington, D.C., March 26 -- The International Finance Corporation (IFC) yesterday launched a Lit200 billion bond issue (approximately US$125 million equivalent) in the Italian capital market. The 6-year maturity fixed rate bonds will carry a coupon of 10.65% and had an issue price of 101.35. This is IFC's first venture into the Lira market. "We are pleased to be launching this issue in a market that has shown great resilience in the face of the general volatility in the European capital markets. Accessing this market provides us with another window for raising funds at attractive costs," noted Richard Frank, IFC Vice President for Finance. IFC will use the funds secured by the issue to help finance its investment initiatives in support of private sector activities in the developing world. The proceeds of the issue will be swapped into US$ floating rate funds. The swap counterparty to IFC in this transaction is Credit Suisse Financial Products, London. Joint lead-managers for the issue are Banca Di Roma (boo
krunner) and UBS Phillips & Drew Secs. Ltd. Co-leads for the issue include Banca Commerciale Italiana, Banca Nazionale del Lavoro, Credit Suisse First Boston (Italia), Credito Italiano, First Bancarlo San Paolo di Torino, Banca d'America e d'Italia, IMI Bank (Lux.), and Morgan Stanley International. An additional 18 banks complete the syndicate. Yesterday's borrowing, along with other IFC issues undertaken since July 1, 1992, brings IFC's market borrowings to US$841 million for this fiscal year (FY). IFC anticipates a FY 1993 (July 1, 1992-June 30, 1993) borrowing program of up to US$1 billion. IFC is a member of the World Bank Group and the largest source of financing for private sector companies in developing countries. Its long-term debt is rated Triple A by both Standard and Poor's and Moody's Investors Services. (30)
