<b>World Bank tests web distribution</b>
|Headline: World Bank tests web distribution
Date: February 2000
Author: Michael Peterson
Amount: $3 billion
Type of issue: Five-year global bond
Launched: Launched January 18 2000
Bookrunner: Goldman Sachs
Which borrower was the first to conduct a bond issue over the internet? Fannie Mae, Freddie Mac and Ford Motor Credit all used the internet on large bond deals last month. The EIB conducted an online auction last year. The World Bank's claim to the title is that its $3 billion five-year global, launched last month but announced at the start of the year, was the first bond issue where the entire syndicate could sell over the internet. "This was the first comprehensive online deal," says Gumersindo Oliveros, the World Bank's director of treasury finance. He says not only could investors buy and trade the bond electronically, the bookbuilding process could be followed in real time by the issuer.
But the deal may also be remembered for claiming the first casualties of the age of debt on the net. Lehman Brothers received a small dent to its pride when, let down by the technical capabilities of its joint-venture partner Fidelity, it was demoted from joint bookrunner to joint lead manager.