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PRESS RELEASE March 20, 1968

World Bank Announces New Issue of DM 120 Million of 10-Year Deutsche Mark Bonds

A new issue of DM 120,000,000 (U.S. equivalent $30,000,000) of 6-3/4% Ten-Year Deutsche Mark Bonds of the International Bank for Reconstruction and Development (World Bank) is to be offered in Germany on March 22 by a group of some 70 leading German banks headed by the Deutsche Bank A.G. as the principal manager and the Dresdner Bank A.G. as the co-manager. The new issue, which will mature on March 1, 1978, is being offered at 98-1/2% and accrued interest.

This is the third public offering of World Bank bonds in Germany. Of the first issue, amounting to DM 200,000,000 of 5% Bonds offered in 1959, DM 60,000,000 has been repaid and the outstanding balance matures in seven annual installments to April 1, 1974. The second issue, amounting to DM 250,000,000 of 5-1/2% Bonds was offered in March 1965 and will mature in 15 annual installments beginning Apri1 1, 1971.

The bonds of the new issue will be repayable at par on March 1, 1978. Neither the Bank nor the bond holders will be entitled to premature the Bonds. Interest will be payable semi-annually on March 1 and September 1 with the first payment due on September 1, 1968.

The German withholding tax of 25% on interest payments made to non-residents does not apply to these bonds.

The issue will be listed on the stock exchanges of Berlin, Bremen, Dusseldorf, Frankfurt am Main, Hamburg, Hannover, Munich and Stuttgart.

Proceeds from the current issue will be used in the general operations of the Bank.

The principal business of the Bank is lending for economic development in the territories of its member countries. The Bank has lent the equivalent of some US$11 billion in 83 countries, principally for basic development projects in the fields of power, transportation, agriculture and heavy industry. Of these loans the Bank has sold some US$2.l billion and a further US$1.4 billion has been repaid to the Bank.

One hundred and seven governments are members of the Bank and have subscribed US$22.9 billion of capital, of which the equivalent of US$2.3 billion has been paid in and the remainder is callable only to meet obligations of the Bank arising from sales of its own obligations or from its guarantees of the obligations of others.

The operations of the Bank have resulted in the accumulation of total reserves of about US$1.2 billion, including a special reserve of US$291 million to protect holders of the Bank's obligations and a supplemental reserve of about US$869 mil-lion against losses. In addition, for the first six months of the fiscal year to December 31, 1967, the Bank had unallocated net income amounting to more than US$83 million.

On a pro forma basis, after completion of the current offering, outstanding funded debt of the Bank will aggregate the equivalent of approximately US$3.3 billion.