The International Bank for Reconstruction and Development proposes to make an offering of $75 million Twenty-Three Year 4-3/4% Bonds this month, Eugene R. Black, President, announced today. The issue will be sold through a nationwide underwriting group under the joint management of Morgan Stanley & Co. and The First Boston Corporation.
As in the two most recent issues in the United States market, 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 specified delivery dates between February 1, 1958 and November 1, 1960. This arrangement is expected to serve the dual purpose of coordinating a portion of the Bank's borrowing 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 for 10 years. During this ten-year period a purchase fund of equal monthly amounts aggregating 5% per annum will operate to purchase Bonds available in the open market. Beginning in 1967, a sinking fund will be in effect calculated to retire 50% of the issue by maturity.
