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World Bank Launches Second E*bond

Washington, DC, February 29, 2000—Today the World Bank launched its second full-integrated global electronic bond offering via the internet. This USD 2 billion 2-year offering follows the Bank's ground-breaking first e*bond that was launched on January 19, 2000. The new global bonds carry a coupon of 6.75% and have a final maturity of March 6, 2002. The issue was priced to yield 33 b.p. over the benchmark 2-year US Treasury bond, resulting in a yield to investor of 6.87% on a semi-annual basis.

The World Banks' second internet transaction was lead-managed by Warburg Dillon Read which took a USD 1.6 billion allotment. The syndicate group includes the following four co-lead managers, each with a USD 100 million allotment: CSFB, Goldman Sachs, Paine Webber, and Charles Schwab. All the underwriters have the capability to offer bonds on-line, and the security will be traded electronically in the secondary markets through the proprietary trading systems of Warburg Dillon Read and Goldman Sachs.

As with the World Bank's first internet bond, this electronic transaction was marketed through an internet road show (www.NetRoadshow.com) in addition to conventional marketing channels. Investors could also access information on the World Bank through the debtsecurities web site of the World Bank (www.worldbank.org/debtsecurities). DebtWeb -- the internet offering platform of Warburg Dillon Read -- recorded 1,600 hits on the day of launch of this transaction.

By the time the World Bank's bonds were priced, by 11 am on the day of launch, the transaction was well oversubscribed. The issue was distributed as follows: 39% was placed with accounts in Europe; 31% with investors in the Americas; and 30% with Asian accounts. In terms of investor types, the distribution profile was as follows: 36% fund managers; 26% central banks; 15% pension funds; 14% retail buyers; 8% banks; and 1% insurance companies. There was strong demand from Swiss investors who took 82% of the European placement. The single largest ticket was sold to a Swiss private banking firm for its high net worth clients. Retail Switzerland also purchased a significant volume of the transaction. American and Asian sales were primarily to institutional accounts.

About half of the issue was sold directly through the internet, compared with about one third in the World Bank's first electronic bond offering. This confirms the potential value-added derived from an electronic bond offering via the internet. The balance of the issue was distributed using traditional modes of communications, including telephone and Emails.

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