•    INTERNATIONAL BANK FOR
     RECONSTRUCTION AND DEVELOPMENT
     1818 H STREET, N.W., WASHINGTON     D. C. 20433    TELEPHONE: EXECUTIVE 3-6360




             July 12, 1972                             Subject:   World Bank Bond Issue in Italy

                    The World Bank. and a syndicate of six I tali an banks headed by Banca

            Commerciale Italiana signed an agreement todayJl July 12, covering a public

            · issue in the Italian capital market.      The syndicate members are E.~nca

            Commerciale Italiana, Credito Italiano, Banco di Roma, Banca Nazionale de!
            Lavoro, Banco di Napoli and Bru1co di S:f.cilia.

                    The prin~ipal amount of the issue is Lit 25,000 million (approximately

            $43 milli.on equivalent) bearing interest at ttc rate of 7% per anm1m with a




•           final maturity of 15 years.

            of par.
                                            The Bonds will be offered at a price of 98 1/2

                       The issue will be repayable at par, exclusively 1:.y drawings, after

            a five-year grace period, in 10 annual installments on August 1 oZ each of

           the years 1978 to 1987; the schedule of repayments results in approximately

           equal annual payment of principal and interest.          The Bonds will be callable on

           each August 1 of the years 1976 to 1986 at prices declining from 1011/2% to
           par.

                   The Bonds will be listed on the Milan and Rome Stock Exchanges.          The

           proceeds of the issue will be used in the general operations of the World
           Bank.

                   This is the second World Bank borrowing in Italy.        In July 1961,

           Lit 15,000 million of 15-year bonds were offered publicly through a syndicate

           headed by the Banca d'Italia and including otherwise the same banks which are



-·         underwriting the present issue.



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