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PRESS RELEASE June 15, 1955

World Bank Announces Redemption of 10-Year Canadian Dollar Bonds of 1952

The International Bank for Reconstruction and Development, often called the World Bank will redeem Can.$13,600,000 outstanding of its 4% 10-Year Canadian Dollar Bonds of 1952 on August 1, 1955 at 101½ and accrued interest. The bonds, part of an original issue of Can.$15,000,000 sold in February 1952, have a stated maturity date of February 1, 1962. Payment on redemption will be made at any agency of the Bank of Canada in Canada.

In commenting on the redemption, Eugene R. Black, President of the Bank, pointed out that the 4% 10-Year Bonds, though favorably regarded in Canada, have not fully reflected the improvement in the market there, and because of the ceiling imposed on their market price by the call price of the issue. Consequently, the Bank has decided to call the bonds for redemption.

Three World Bank bond issues aggregating Can.$53,600,000 are currently outstanding in Canadian dollars. The 4% 10-Year Bonds to be redeemed were the first to be offered in the Canadian market. Subsequently, an issue of Can.$25,000,000 3½% 15-Year Bonds was offered at 99 on June 17, 1954; and more recently an offering of Can.$15,000,000 3-¼%10- Year Bonds was made at 99 on March 21, 1955.

All of the issues were distributed by a nationwide syndicate of investment dealers headed by Wood, Gundy & Company Limited, Dominion Securities Corpn. Limited, and A. E. Ames & Co. Limited.

Mr. Black in discussing the market for the Bank's bonds in Canada said that “World Bank bonds have won rapidly increasing acceptance among Canadian institutions and private investors based on a growing recognition of their strength and of the Bank's record of successful operations. All of the Bank's Canadian issues are currently selling above par."

Referring to the Bank's record for the current fiscal year ending June 30, 1955, Mr. Black disclosed that "The Bank will have made loans of more than $400,000,000 a new high - and earnings will have reached a new peak of about $24,000,000 for the period." Total loans made by the Bank since it began operations in 1946 aggregate about $2,300,000,000. In addition to Canada the Bank has sold its issues in Great Britain, the United States, Switzerland and the Netherlands. The total of its bonds now outstanding amounts to the equivalent of $851,590,000.