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PRESS RELEASE November 18, 1958

World Bank Offers $100 Million 15-Year Bond Issue

“A new issue of $100 million International Bank for Reconstruction and Development (World Bank) 4½ per cent fifteen-year bonds is being offered today (November 18) by an underwriting group comprising 181 investment firms and commercial banks headed jointly by The First Boston Corporation and Morgan Stanley & Co. The bonds, due December 1, 1973, are priced at 100 per cent and accrued interest to yield 4.50 per cent to maturity.

"The bonds are not redeemable prior to December 1, 1968, except through the operation of a sinking fund. Under the sinking fund, the Bank will retire $5 million of the bonds on or before June 1, 1964 and on or before June 1 in each year to and including 1973. The sinking fund is calculated to retire 50 per cent of the issue prior to maturity. From December l, 1968 the bonds are subject to optional redemption at prices ranging from 102½ per cent to par.

“As in the case of other World Bank issues recently sold in this country, the Bank is offering certain institutional investors the privilege of taking delayed delivery of the bonds on one or more quarterly dates from March 1, 1959 through December 1, 1960. A commitment fee at the rate of 3/4 per cent per annum from December 2, 1958 to delivery will be paid by the Bank to purchasers under the delayed delivery contracts. The delayed delivery arrangement is expected to enable the Bank to coordinate a portion of its borrowings with loan disbursements and also to make it possible for the purchasers to arrange payments to suit individual preferences in the light of their own projected cash positions.

"This is the tenth issue of World Bank bonds to be marketed in the United States on a negotiated basis by underwriting groups headed by The First Boston Corporation and Morgan Stanley & Co. The last previous sale involved $150 million ten-year 3-3/4 per cent bonds in May of this year.

"Giving effect to the present issue, to delivery of bonds under delayed delivery contracts, and to amounts to be drawn down under a Deutsche Mark borrowing, the Bank1s funded debt will be $l,845,141,039 which includes $1,591,190,000 payable in U.S. dollars and the equivalent of $247,351,039 payable in other currencies.

"From its establishment to September 30, 1958, the Bank had entered into loan commitments in an aggregate principal amount equivalent to $4,111,387,893 to finance programs or projects in 49 countries. The loan commitments effective and held by the Bank as of September 30, 1958 totaled $2,999,051,062, of which the undisbursed balance was $732,044,874.”