WASHINGTON, D.C., July 31, 1998 --- The International Finance Corporation today launched a first ever zero coupon global bond offering in Greek drachmae under its Global Medium Term Note program.  The 10-year zero coupon notes have a face value of GRD 10 billion (about US$34 million) and an issue price of 54.45 percent.  The proceeds of the issue will be swapped into US floating rate funds.  The lead manager is J.P. Morgan Securities Limited and the syndicate group comprises Alpha Credit Bank, Barclays Bank, Banque Bruxelles Lambert, Cariplo, Deutsche Bank, DG Bank, ING Barings, Nord LB, Paine Webber and Toronto Dominion.

This transaction is the fourth borrowing for the new fiscal year, which began on July 1, 1998, and brings IFC’s market borrowings for FY99 to about US$331 million.  The funds which IFC raise 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. Its long-term debt is rated triple-A by both Standard & Poor’s and Moody’s Investors Service.