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PRESS RELEASE June 28, 1966

World Bank Announces Public Offering of $175 Million 25-Year Bond Issue

"The First Boston Corporation and Morgan Stanley & Co., as managers of a nationwide group of underwriters, announce the public offering of $175,000,000 International Bank for Reconstruction and Development 5-3/8% Twenty-Five Year Bonds of 1966, due July 1, 1991, at 99-3/4% to yield 5.39%. This is the first World Bank Bond issue in the United States since January 1965.

"The Bonds are not callable prior to July 1, 1976. They are redeemable at the option of the Bank at a redemption price of 102 ½% for those redeemed on and after July 1, 1976 to and including June 30, 1981, at 101¼% thereafter to and including June 30, 1986 and at 100% thereafter. They are also redeemable through operation of the sinking fund, commencing in 1977 at the principal amount together with accrued interest.

"The net proceeds to the Bank of the sale of the Bonds to the underwriters and under the contracts for delayed delivery will be used in the general operations of the Bank.

"The Bonds being offered are not subject to the interest equalization tax. Furthermore, the 1966 "Guidelines for Non-Bank Financial Institutions," issued by the Federal Reserve System in December 1965, place no restraint on purchases of the Bonds. Thus, no guideline restrictions affect purchases by non-bank financial institutions, including trust companies or trust departments of commercial banks.

"In order to cooperate with the President's balance of payments program, the World Bank intends to invest in the United States the proceeds from the sale of these Bonds to U.S. investors, so as to eliminate any effect on the U.S. balance of payments until the end of 1967.

"In addition to the initial delivery of the Bonds, which is expected on July 13, 1966, Bonds will also be offered for sale on a delayed delivery basis, through the underwriters, to certain institutional purchasers. Delayed delivery sales will be made under contracts between the World Bank and the purchasers for settlement on October 5, 1966, January 4, 1967, July 5, 1967 and January 3, 1968. A spokesman for the underwriters indicated that perhaps more than half of the issue would be sold for delayed delivery."