Robert S. McNamara, President of the World Bank, announced today that the Bank "has taken a further step to expand and diversify the international market for its bonds" by selling its first issue in the Kuwaiti market.
The issue, the first public marketing of World Bank bonds in the Middle East, consists of KD 15 million (US equivalent $42 million) of 6-1/2 Twenty-Year Kuwaiti Dinar Bonds. It is being offered by the Kuwait Investment Company at 99%.
Mr. McNamara expressed his "pleasure and sincere appreciation to the Kuwait Government for its approval of the offering and to the Kuwait Investment Company for underwriting the issue at a time when the Bank is expanding its lending and borrowing operations ". The World Bank's Dinar issue is the first ever offered publicly in Kuwait by anyone, he pointed out. Mr. McNamara said that, including the current issue, the Bank will have sold the equivalent of $285 million of new money issues in five markets in Europe and the Middle East since April 1, 1968.
TERMS WITH THE ISSUE
The new Kuwaiti Dinar issue will be dated September 15, 1968 and mature on September 15, 1988. The bonds are not subject to redemption until five years after issue date. On and after September 15, 1973, the Bank may call for redemption of the bonds on a schedule of declining premiums beginning at 1041. Fifty per cent of the issue will be retired prior to final maturity. Repayments will be made at par in ten equal annual installments of KD 750,000 during the years 1978-1987, inclusive, and one final payment of J.<D 7.5 million in 1988.
The proceeds of the issue will be convertible and will be used in the general operations of the Bank.