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PRESS RELEASE January 7, 1958

World Bank Offers $150 Million 21-Year Bond Issue

Announcement is being made in New York today (January 7) 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:

"A nation-wide underwriting group comprising 176 investment firms and banks, managed by The First Boston Corporation and Morgan Stanley & Co., is offering publicly today (January 7) an issue of $150,000,000 International Bank for Reconstruction and Development (World Bank) 4-1/4 per cent, twenty-one year bonds of 1958, due January 15, 1979, at a price of 99½ per cent and accrued interest to yield 4.29 per cent to maturity.

"The new bonds will not be callable prior to January 15, 1968. On and after that date they will be callable at the option of the Bank at prices ranging from 102½ per cent and accrued interest if redeemed on or before January 14, 1970, down to 100 per cent after January 14, 1976. As a sinking fund for the bonds, the Bank will redeem $7,000,000 annually beginning in 1968 and including 1977, and $5,000,000 in 1978. Purchases for the sinking fund which is calculated to retire 50 per cent of the issue prior to maturity, will be at a price of 100 per cent.

"As in other recent issues by the Bank in the United States, arrangements have been made for the 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 on one or more quarterly dates from April 15, 1958 through January 15, 1961. A commitment fee of ¾ per cent a year will be paid by the Bank to purchasers under the delayed delivery contracts.

“The delayed delivery arrangement, as in the past, is expected to enable the Bank to coordinate a portion of its borrowing with its loan disbursements, and to make it possible for purchasers to arrange their payments to suit their projected cash positions.

“This is the eighth issue of World Bank bonds to be marketed in the United States on a negotiated basis by underwriting groups managed jointly by The First Boston Corporation and Morgan Starlet & Co.; the last such sale consisted of $75,000,00 of twenty-three-year bonds placed in mid. October, 1957. Net proceeds from the current sale will be used in the general operations of the Bank. Application will be made to list the bonds on the New York Stock Exchange.

“As of November 30, 1957, the Bank´s outstanding funded debt was $1,270 million. Slightly more than half of this was held by investors outside the United States. Giving effect to the present issue and to delivery of bonds under delayed delivery contracts, the Bank´s funded debt is increased to $1,471 million. It includes United States dollar obligations of $1,271 million and Swiss franc, Canadian dollar, sterling and Netherlands guilder obligations aggregating the equivalent of $200 million.

“From its establishment to December 31, 1957, the Bank had entered into loan commitments in an aggregate principal amount equivalent to $3,480 million to finance programs or projects in 46 countries.”