Washington, DC, August 29, 2007 – The International Bank for Reconstruction and Development (the "World Bank") rated Aaa/AAA, launched a 3 billion Icelandic Krona (ISK) bond due May 12, 2009 for European retail and institutional investors. The ISK 3 billion is a syndicated transaction lead managed by Deutsche Bank AG. The co-lead managers are KBC and TD Securities.
 
Amount: ISK* 3 billion
Settlement date: September 12, 2007
Maturity date: May 12, 2009
Issue price: 100.085%
Coupon: 12.25% annually
Denomination: ISK 100,000
Listing: Luxembourg
Clearing systems: Euroclear and Clearstream
ISIN: XS0319375316

* The principal amount of the bond was increased on September 28 by the issue of a second tranche for an amount of ISK 2 billion with an issue price of 99.89% (settlement date: October 4, 2007). On October 4, the principal amount was further increased by a third tranche for an amount of ISK 2 billion with an issue price of 99.88% (settlement date: October 12, 2007). The new total outstanding principal amount is ISK 7 billion.

The World Bank's bond products and investor presentation can be accessed through the website of the World Bank for bond investors (www.worldbank.org/debtsecurities). For a list of selected bonds issued recently by the World Bank, see: http://treasury.worldbank.org/recentissues.