The first issue of guilder bonds of the International Bank for Reconstruction and Development will be publicly offered in the Netherlands today in an amount of Fl. 40,000,000, equal to approximately $10,500,000. An underwriting syndicate of fourteen Dutch banks headed by the Netherlands Trading Society (Nederlandsche Handelmaatschappij, N. V.) will offer the issue to the public at par.
The new issue will be known as the 31/2% Netherlands Guilder Bonds of 1954. It will bear interest at 31/2% a year payable semi-annually on February l and August 1, with the first payment due on February 1, 1955. The bonds will be repaid at par in ten equal instalments or Fl. 4,000,000 on August l of each year beginning in 1960 and continuing through 1969. Bonds to be repaid will be drawn by lot at least forty-five days before the date of repayment. In lieu of bonds drawn by lot, the Bank may credit to annual repayments the principal amount of bonds purchased by it below par on the Amsterdam Stock Exchange.
On or after August 1, 1960, the Bank may redeem all or part of the issue at any time on not less than sixty days' notice. Prior to August l, 1965, the redemption price will be 101% and thereafter it will be par. Paying agent for principal and interest on the bonds is the Netherlands Trading Society.
This is the eleventh issue of bonds sold by the Bank for currencies other than United States dollars. The principal amount of these sales, including the guilder issue is equivalent to about $130,000,000. A summary of these sales, with amounts expressed in United States dollars, follows:
MON-DOLLAR BONDS SOLD
One Netherlands Guilder Issue
Seven Swiss Franc Issues
Two Canadian Dollar Issues
One Sterling Issue
AMOUNT EXPRESSED IN U.S. DOLLARS
In “this” calendar year issues equivalent to $45,000,000 have been sold by the Bank in Canada., Switzerland and the Netherlands.
The total of Bank bonds outstanding in currencies other than United States dollars, giving effect to the guilder issue, is equivalent to approximately $122,200,000; the equivalent of $7,500,000 in Swiss franc bonds has been repaid.
The Bank also has eight United States dollar issues outstanding in an amount of $665,000,000; and the Netherlands issue brings the value of all outstanding bonds up to about $787,000,000.