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First World Bank Bond in Romanian Domestic Market

Bucharest, September 18th , 2006 - The New Romanian Leu-denominated domestic bond of RON525 million launched by the World Bank (International Bank for Reconstruction and Development, rated AAA/Aaa) on August 28, 2006, settles today. The bond is the first by a foreign issuer and the largest ever launched in the Romanian domestic capital market.

The World Bank transaction was very successful and reached a diverse investor base. It was 1.2 times oversubscribed and placed with domestic (77%) and foreign (23%) investors. About  55% was purchased by corporates, 35% by banks, and almost 10% by insurance companies, pension funds and asset managers. Although small in terms of overall percentage (less than one percent), there was strong interest from many retail investors who accounted for about half of the orders.

The IBRD bonds are due in 2009, have a 6.5% coupon that is paid semi-anually, and were priced at par.  The subscription period commenced on August 30, 2006 and closed on September 12, 2006.  ABN AMRO Bank (Romania) was the financial advisor, distribution group & payment agent. The sale of the bonds was managed by Intercapital Invest.

"We are delighted that the IBRD Romanian Leu bond issue was so well received by such a diverse investor group. Many institutional and individual investors - domestic and foreign - seized the opportunity to invest in triple-A rated Romanian Leu bonds to provide funds to the World Bank for our development activities." said Doris Herrera-Pol, Head of Capital Markets, at the World Bank.

"This transaction opened the Romanian capital market and its success will stimulate other supranational, financial institutions and corporates to issue as well, supporting a more active capital market as a result.” said Martin Bakelaar, Head of Global Markets at ABN AMRO Bank (Romania).

We believe that the success of the World Bank issue in Romania will send a strong message to corporate issuers in the country. Hopefully, the listing of the issue will facilitate a more active fixed income market at the Bucharest Stock Exchange" said Razvan Pasol, President of Intercapital Invest.

See also: World Bank Launching First Supranational Issue in Romanian Domestic Market

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.

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