The following announcement is being made in New York City by The First Boston Corporation and by Morgan Stanley & Co.:
"A new issue of $100,000,000 Fifteen-Year 3½ per cent dollar bonds of the International Bank for Reconstruction and Development, generally known as the World Bank, is being placed on the market today (January 12) by a nationwide underwriting group of 167 investment firms and banks, jointly headed by The First Boston Corporation and Morgan Stanley & Co. Of the total, $98,000,000 of the bonds are being offered in the United States at a price of 100 and accrued interest to yield 3.50 per cent to the maturity date of January 1, 1969. The remaining $2,000,000 are being underwritten by the Credit Suisse, Zurich, Switzerland, and will not be offered in the United States market.
"The offering represents the fourth and largest issue of World Bank bonds to be brought out in the United States on a negotiated underwriting basis. Earlier negotiated issues included a $75,000,000 Three-Year 3 per cent loan sold in September, 1953; a $50,000,000 issue of Twenty-three Year 3 3/8 per cent bonds offered in May, 1952 and $60,000,000 of Nineteen-Year 3½ per cent bonds marketed in October, 1952. The three issues were successfully distributed by syndicates headed by the same firms managing today's offering.
"Total outstanding funded debt of the Bank, giving effect to issuance of the new bonds, will consist of $753,479,877 expressed in U.S. currency. Of this total, $675,000,000 constitute U.S. dollar bonds, $13,636,364 Canadian dollar bonds, $14,000,000 pound sterling bonds and $50,843,513 Swiss franc bonds.
"As a sinking fund the Bank will retire $4,000,000 of the new bonds on or before July 1, 1957 and in each year thereafter to and including 1966, and $5,000,000 of the bonds in 1967 and a like amount in 1968, thus providing for retirement of 50 per cent of the issue prior to maturity. The bonds are redeemable, at the option of the Bank, at 103½ per cent to and including January 1, 1957 and at decreasing prices thereafter, and in part for the sinking fund on or before July 1, 1957 and on or before July 1 in each year thereafter at 100 per cent."