A SUPPLEMENT TO EUROMONEY - MARKETS 1997The World Bank The World Bank plans to borrow $11 billion of medium- and long-term funds in the fiscal year ending June 30 1997, subject to a review of its needs this month. The Bank had raised about $7.5 billion of the total by mid-January. In the process, its focus has shifted dramatically from reliance on global dollar bond issues to a heavy use of swap-driven transactions. "Our challenge is to balance our funding needs, which have changed considerably due to the wider choice of loan products that we offer our borrowers, with our objectives of maintaining a substantive presence among major investor groups, seeking out the most cost-effective transactions and diversifying across instruments and markets," says Gumersindo Oliveros, senior manager of capital markets operations in the Bank's treasury finance department. During calendar 1996, the World Bank raised $13 billion through more than 80 medium- and long-term transactions in 16 currencies with tenors ranging from two to 33 years. Globals contributed only 15% of funding in 1996 compared with about 70% in 1995, as the Bank increasingly used currency swaps to lower its borrowing costs and diversify its investor base. |