The International Bank for Reconstruction and Development intends to issue a call next week for redemption by lot of $700,000 principal amount of its 4% 10-year Canadian Dollar Bonds of 1952. The Bonds being redeemed will become payable and due on February 4, 1955, at any agency of the Bank of Canada in Canada. Redemption at that time will fulfill virtually a year in advance the Bank's obligation to retire not less than $700,000 of the issue in a 12-month period ending February 1, 1956.
The Bonds will be redeemed at par plus accrued interest.
The 1952 issue amounted to $15,000,000. The terms of the issue require the Bank to retire not less than $700,000 of the bonds on or before February 1 of each of the years 1955 to 1960, inclusive, and $800,000 in the 12 months ending February 1, 1961. The Bank also has the right to repurchase any amount of the issue in the open market.
In August 1954 the Bank called $700,000 of the Bonds for redemption in October, and may, at its option, apply then to a sinking fund payment due, under the terms of the issue, by February 1, 1955. The redemption now contemplated may, at the Bank's option, be applied to the sinking fund payment due on or before February 1, 1956.