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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.
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