World Bank sells $6-B bonds to finance aid

Posted at 03/27/2009 12:17 PM | Updated as of 03/27/2009 12:17 PM

WASHINGTON - The World Bank said on Thursday it sold $6 billion worth of bonds -- its biggest ever issue -- to finance aid programs to countries struggling with the global economic crisis.

"The World Bank's conservative capital structure and finances puts it in an excellent position to help its members sustain key development programs through this very tough economic environment," said World Bank treasurer Kenneth Lay.

"We've been able to scale up quickly to help countries address the financing gaps faced by many, and today's deal makes a notable contribution to that effort."

The three-year global bonds pay 2.0 percent, which amounts to a 2.09 percent yield for investors. The bond issue was managed by Citigroup, HSBC, JPMorgan Chase and Royal Bank of Scotland.

The funds go to the Bank's poverty-fighting International Bank for Reconstruction and Development, to help fund investments in developing countries dealing with the impacts of the global financial crisis.

IBRD could make new commitments of up to $100 billion over the next three years and lending may almost triple to $35 billion.


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