The World Bank has arranged the sale, entirely outside the United States, of a $75 million issue of United States dollar bonds. The sale was made by private placement with 40 institutional investors in 26 countries and marks a broadening of the already wide international market for the bonds of the Bank.
The new bonds will be known as the "Two Year Bonds of 1958,” and will carry interest 3 1/4%, payable semi-annually, with the first payment due on April 1, 1959. The issue is dated October 1, 1958 and matures October 1, 1960.
There was keen interest in the issue among the selected institutions approached, orders being received for $127 million of bonds. Requests for bonds were received from institutions that had not previously bought the Bank´s obligations and in countries where Bank bonds had not been held before.
Purchasers of the issue included central banks, government special accounts, commercial banks, insurance companies and private corporations. The issue was sold chiefly to investors 'Who made purchases from the $75 million issue of 3 1/2% dollar bonds, also placed entirely outside the United States, which matures on October 1, 1958.
The countries where buyers purchased the new bonds are:
Australia
Austria
Belgium
Canada
Denmark
El Salvador
Ecuador
Ethiopia
Finland
Germany
Greece
Honduras
Iran
Israel
Italy
Japan
Mexico
Netherlands
Morocco
Nicaragua
Norway
South Africa
Sweden
Switzerland
Thailand
United Kingdom
The current transaction is the eighth private placement of World Bank dollar bonds outside the United States. The total of these placements is $600 million, of which $115 million will have been retired when the new 3 ¼% become outstanding.
The total of the Bank's funded debt will not be affected by the sale of the new issue. Outstanding bonds and notes of the Bank will still stand at about $1,700 million, of which, it is estimated, 47% are held outside the United States.
Included in these holdings outside the United States are $575 million of the Bank's dollar bonds and notes; this is almost two-fifths of the $1,500 million of the Bank's obligations that are denominated in United States dollars. The remainder of holdings outside the United States amounts to some $200 million equivalent, denominated variously in Canadian dollars, Deutsche Marks, Netherlands guilders, pounds sterling and Swiss francs.
