A new issue of $25,000,000 of 5-1/4% Twenty-Five Year Canadian Dollar Bonds of the International Bank for Reconstruction and Development (World Bank) is being offered today by a syndicate of investment dealers and banks headed by Dominion Securities Corporation Limited, A. E. Ames & Co. Limited and Wood, Gundy & Company Limited. The new issue, which will mature on March 15, 1990, is being offered at 99-1/2% to yield about 5.28%.
This is the first offering of World Bank bonds in Canada in 10 years. The last issue, amounting to $15,000,000 of 3-l/4l Bonds, was offered in March 1955 and will mature April 1, 1965. Previously, two issues of World Bank Canadian dollar bonds had been offered in Canada.
Proceeds from the current issue will be used in the general operations of the Bank.
The 5-1/4% bonds will be non-callable for the first 12 years after their date of issue, which is March l5, 1965. A sinking fund has been provided beginning in 1978. It is designed to retire about 25% ($6,000,000) of the principal amount of the issue by maturity. Call price for bonds retired under the sinking fund will be par. In the event additional bonds over ao4 above the sinking fund requirements are called, redemption prices start at 102 from March 15, 1977 and decline to par as the issue nears maturity.
The principal business of the Bank is lending for economic development in the territories of its member countries.