IBRD plans to price fixed-to-floating CMS spread-linked notes due 2034

By Toni Weeks

San Luis Obispo, Calif., July 14 – The International Bank for Reconstruction and Development plans to price callable fixed-to-CMS-linked notes due July 31, 2034, according to a term sheet.

The notes will pay a coupon of 10% for the first year. After that, the notes will bear interest equal to nine times the difference between the 30-year Constant Maturity Swap rate and the five-year CMS rate minus 50 basis points, subject to a maximum rate of 10%. Interest is payable semiannually and cannot be less than zero.

The payout at maturity will be par plus the final coupon, if any.

The notes will be redeemable on any interest payment date after one year.

Citibank, NA, London Branch is the global agent and paying agent. Citigroup Global Markets Inc. will act as dealer.

The notes (Cusip: 45905UPQ1) will price July 24 and settle July 31.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.