Announcement is being made in New York today (April 18) by The First Boston Corporation and Morgan Stanley & Co. of a public offering of bonds of the International Bank for Reconstruction and Development. In describing the offering the announcement says:
“Public offering of a new issue of $l00,000,000 International Bank for Reconstruction and Development (World Bank) 4¼% Twenty-One Year Bonds of 1957, due May 1, 1978, is being made today (April 18) by a nation-wide underwriting group of 163 investment firms and banks managed jointly by The First Boston Corporation and Morgan Stanley & Co. The bonds are to be priced at 98 per cent and accrued interest.
“As in the case of an offering of World Bank Bonds in January 1957, arrangements have been made for sale of bonds for delayed delivery to certain institutional investors. Such sales will be at the public offering price and deliveries will be made under contracts between the Bank and the purchasers providing for deliveries in instalments on one or more quarterly dates from August 1, 1957 through February 1, 1960. A commitment fee of 3/4% a year will be paid by the Bank to purchasers under delayed delivery contracts; payments will cover the period from May 1, 1957 to date of delivery and will be made to purchasers on delivery.
“The new bonds will not be redeemable before May 1, 1967. On and after that date they will be redeemable at the election of the Bank at prices ranging from 101% and accrued interest if redeemed on or before April 30, 1969, down to 100% if redemption is after April 30, 1975.
"Beginning in 1967, a sinking fund will be in effect which will retire at par $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.”