Eugene R. Black, President, announced today the International Bank for Reconstruction and Development proposes to make an offering of $100,000,000 4¾% Twenty-One Year Bonds, at a price to be determined at the time of the offering -which will be no earlier than Wednesday, April 17, nor later than Wednesday, April 24. The issue will be sold through a nationwide underwriting group under the joint management of The First Boston Corporation and Morgan Stanley & Co.
Since disbursements on loans granted by the Bank are usually made over a period of several years, the Bank, in addition to offering bonds for regular delivery-, will extend to certain institutional purchasers of bonds of this new issue the privilege of making delayed payments giving them a selection of delivery dates between August 1, 1957 and February 1, 1960. Similar arrangements were made in the case of a previous issue sold by the Bank on January 10, 1957. This arrangement is expected to serve the dual purpose of coordinating a portion of the Bank's borrowings with its disbursements and of making it possible for purchasers to arrange their payments to suit their individual preferences in the light of their own projected cash positions.
The bonds will be non-redeemable prior to May 1, 1967. Beginning in 1967, a sinking fund will be in effect which will retire $4,000,000 of the bonds in each of the years 1967 to and including 1971; and $5,000,000 of the bonds in each of the years 1972 to and including 1977. The sinking fund is calculated to retire 50% of the issue prior to maturity.
