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World Bank Launching First Supranational Issue in Romanian Domestic Market

Bucharest, August 28th , 2006 - The International Bank for Reconstruction and Development (IBRD), also known as the World Bank, will issue a New Romanian Leu-denominated domestic bond of RON525 million. This will be the first supranational issue in Romania, under local law and domestic clearing systems. The net proceeds of the sale will be used by IBRD for its general operations.

“We are very pleased to offer investors IBRD bonds in Romanian lei for the first time. We hope that IBRD's bonds will contribute to the depth of the Romanian capital market and serve as a useful benchmark. Supporting the modernization of the capital markets of our member countries is part of our mandate as a development institution and an integral part of our funding strategy.” said Doris Herrera-Pol, Head of Capital Markets, at the World Bank.

The main characteristics of the bonds are presented below:

Total issue amount: 525,000,000 RON
Minimum denomination: 1,000 RON/bond
Subscription period: August 30 to September 12, 2006
Maturity: 3 years
Coupon: 6.50% (paid semi-annually)
Principal repayment date: September 18, 2009
Listing: Application has been made to admit the bonds for trading on the Bucharest Stock Exchange
Manager: SSIF Intercapital Invest SA
Financial advisor, distribution group & payment agent: ABN AMRO Bank (Romania)

The World Bank has the highest issuer credit ratings of AAA from Standard & Poor's and Aaa from Moody's Investors Service.

“It is pleasing indeed that Romania's capital market has evolved to a point where local investors can provide financing to a supranational like IBRD," remarked Anand Seth, World Bank Country Director for South Central Europe. "The interest from foreign investors in this transaction is a signal of Romania's increasing EU convergence and will advance the goal of EU accession, which is a key priority within the government's Country Partnership Strategy."

The World Bank is an international organization established in 1945 and is owned by 184 member countries, including Romania. Its main goal is reducing poverty by promoting sustainable economic development.

See also: First World Bank Bond 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/recentissue.


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