World Bank plans callable fixed-to-CMS-linked notes due 2034

By Marisa Wong

Madison, Wis., June 10 – International Bank for Reconstruction and Development plans to price callable fixed-to-CMS-linked notes due June 30, 2034, according to a term sheet.

The interest rate is 10% for the first year. After that, the rate will equal 4 times the difference of the CMS spread minus 75 basis points, subject to a maximum interest rate of 10% and a minimum rate of 0%. The CMS spread is the 30-year Constant Maturity Swap rate minus the two-year CMS rate. Interest is payable semiannually.

The notes will be callable in whole on any interest payment date beginning June 30, 2015.

Citigroup Global Markets Inc. is the dealer, and Advisors Asset Management, Inc. is the distributor.

The notes will price on June 23 and settle on June 30.

The Cusip number is 45905UPL2.

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