WASHINGTON, D.C., March 9, 1998—On March
6, 1998, the International Finance Corporation (IFC) launched a South African
rand 200 million (approximately US$40.3 million equivalent) bond issue
under its Global Medium-Term Note program. The 2-year Step-Down notes
carry an issue price of 100.875 percent and an annual coupon of 16.25 percent
per annum in year one and of 9.50 percent per annum in year two. The
proceeds of the issue will be swapped in US dollar floating rate funds.
The lead manager is ABN Amro Bank NV with Caboto and Toronto Dominion Bank
as co-lead managers. An additional five financial institutions completed
the syndicate group.
This transaction brings IFC’s market borrowing to about US3,400 million
for the fiscal year 1998 which began on July 1, 1997.
IFC, a member of the World Bank Group, is the largest multilateral source
of financing for private sector companies in developing countries. Its
long-term debt is rated triple A by both Standard & Poor’s and Moody’s