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World Bank Issues Hungarian Forint Bond

Washington, DC, January 9, 2003 – The World Bank launched a Hungarian Forint bond today. The 2-year 10 billion Hungarian Forint (HUF) issue offers investors an annual interest coupon of 6.25% and matures on January 27, 2005.

TD Securities lead managed the bonds, with Deutsche Bank and Dresdner Kleinwort Wasserstein as co-lead managers and Banque et Caisse d'Epargne de l'Etat, Bayerische Landesbank, Caboto IntesaBci, KBC Bank and UniCredito Banca Mobiliare as co-managers.

The initial issue price of the bonds was 100.755%. The Eurobonds will be listed in Luxembourg and will be available in denominations of HUF 1,000,000 and HUF 10,000,000. The ISIN code is: XS0161040604. The issue will also be traded on Toronto Dominion Securities Auto Execution Electronic system (TDAX on Bloomberg), so that banks and brokers will be able to buy the securities electronically over that system.

"This is the Bank's third bond denominated in Hungarian Forint. The issuance was driven by strong interest from retail investors in Switzerland, the Benelux and Italy who are interested in bonds by high-grade issuers in select Eastern European currencies that offer a yield pick-up relative to the Euro" said Doris Herrera-Pol, Head of Capital Markets at the World Bank. HUF bonds currently provide a 3.80% yield pick-up relative to Euro-denominated paper.

The World Bank has a long history of issuing bonds in emerging market currencies and over the years has offered investors World Bank debt products in 40 currencies, including Chilean Peso, Czech Koruna, Mexican Peso, Polish Zloty, Slovak Koruna, and South African Rand.


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