European Investment Bank launches an "Euro"-tributary issue denominated in Italian Lira

The European Investment Bank (EIB), the European Union's long-term financing institution, is issuing a ITL 1.000 billion bond today. The coupon will be 9% until 15th February 1999 and 5.75% thereafter.

In the framework of EIB's strategy towards the "Euro", specific clauses will permit the redenomination of the issue in Euro and its consolidation with other European Investment Bank Euro and Euro-tributary issues. This issue in Lira follows the successful launch by the EIB earlier this year of five Euro-tributary issues denominated in NLG, FRF, PTE, GBP, DEM, under terms allowing the Bank to redenominate the issues in Euro after January 1999, with the coming into force of the 3rd stage of the EMU. The EIB thus prepares for a possible consolidation of future Euro-tributaries with other Euro issues to create, for each maturity category, larger single Euro issues after January 1999.

Differentiated coupon structure aims at pricing the issue not below par, thus ensuring equal fiscal treatment for Italian residents vs. previous EIB tributary issues after possible consolidation.

The EIB has appointed BNL, Credito Italiano and Paribas to act as joint lead-managers of the issue.