WASHINGTON, D.C., June 17, 1998 --- On June
16, 1998 the International Finance Corporation made its debut into the
Estonian market with the launch of an Estonian kroon 100 million (approximately
US$6.9 million equivalent) Eurobond issue, which is the first of its kind.
The three-year notes carry an annual coupon of 10.00 percent, and were
issued at a price of 101.35 percent of the par. The proceeds of the issue
were swapped into US dollar floating rate funds.
The lead manager for the issue is RBC DS Global Markets with a syndicate
group comprised of ABN AMRO Bank N.V., Bayerische Vereinsbank Aktiengesellschaft,
KBC Bank NV, Norddeustche Landesbank Girozentrale and West Merchant Bank
Limited. The issue is expected to be placed primarily with European retail
This issue is part of IFC’s goal of contributing to the development of
new capital markets. IFC, part of the World Bank Group, fosters economic
growth in the developing world by financing private sector investments,
mobilizing capital in international financial markets and providing technical
assistance and advice to governments and businesses.
This transaction under IFC’s Global Medium Term Note Program brings IFC’s
market borrowings to about US$3,973 million for the fiscal year 1998, which
began on July 1, 1997. The long-term debt of the IFC is rated triple-A
by both Standard & Poor’s and Moody’s Investors Service.