The following statement, for release to Monday morning papers (March 21, 1955) is being made in Toronto, Canada by a group of investment dealers and chartered banks:
“A new issue of $15,000,000 3-1/4% Ten Year Canadian Dollar Bonds of 1955 of the International Bank for Reconstruction and Development is being offered by a syndicate of investment dealers and banks headed by Wood, Gundy & Company Limited, Dominion Securities Corp. Limited and A. E. Ames & Co. Limited. The new issue is to mature April 1, 1965 and is offered at the price of 99 to yield about 3.37%.
“This is the third public offering of bonds made in Canada by the Bank, the first having been made in 1952 and the second in 1954. Both these issues are now selling above the original offering prices.
"A sinking fund will be established commencing in 1958 which will be sufficient to retire $3,500,000 principal amount of the bonds prior to maturity. The Bank will also have the option to redeem all or part of the remaining bends prior to maturity at premiums ranging up to 2% of the principal amount.
"The proceeds of the issue will be used in the general operations of the Bank which are to assist in the reconstruction and development or its member countries by facilitating the investment of capital for productive purposes; thereby promoting the long-range growth or international trade and the improvement of standards of living.
"Loans are made by the Bank for productive purposes and due regard is paid to the prospects of repayment. All the loans not made directly to member governments are guaranteed by the member government in -whose territory the project is located.
"Fifty-six governments are members of the Bank including Canada., Great Britain and the United States. As of December 31, 1954, the Bank had entered into loan commitments totaling more than $2 billion to finance projects in the territories of thirty-three of its member countries.
"The operations of the Bank have resulted in the accumulation of substantial net earnings. These earnings, as of December 31, 1954, amounted to $109.l million. The Bank derives additional income from a statutory commission of 1% it charges on loans; and accumulated income from this source amounted to $55.6 million at the end of 1954. Income from commissions has been appropriated to a Special Reserve; net earnings have been placed in a Supplemental Reserve. At December 31, the two Reserves totaled $164.7 million.”