WEST GERMAN RAILWAY ISSUES DOMESTIC STOCK
The West German federal railway is
raising 900 mln marks through a 10-year loan stock on the
domestic market with a coupon of 6-1/4 pct and price of par, a
Bundesbank spokesman said in response to enquiries.
    Some 750 mln marks will be offered for immediate sale with
75 mln held back for market regulation and the remaining 75 mln
placed with the railways own bank.
    The stock will be offered for sale between March 17 and 19
and will be listed on all German stock exchanges from March 20
to 24. The stock pays annual interest on April 1.
    Terms of the bond conformed with those expected earlier
today, dealers said.
    The bond rose in the first hour of grey market trading to
less 7/8, less 5/8, after being quoted at less 1-1/8, less 7/8
in first business.
    Dealers said demand rose owing to the bond's relatively
small size.
    In contrast, the last railway issue in January totalled 1.1
billion marks, of which 900 mln was distributed for immediate
sale.
 REUTER
