The World Bank has arranged a private placement of a sum totaling DM 400 million ($100 million) with the Rheinische Girozentrale und Provinzialbank, Dusseldorf, in cooperation with other German banks. The placement is divided into three parts.
The first part will be DM 150 million and will carry an interest rate of 6-1/2% per annum. This agreement was signed in Dusseldorf today (Monday, December 16). Repayment will be in eight annual installments starting in January 1977.
In announcing this Mr. Robert S. McNamara, the World Bank President said "This is a further step in our borrowing program which will permit an enlargement of our development effort within the same high standard of careful evaluation and sound financing that has been traditional within the World Bank. I am grateful to all those German authorities and institutions who have played so large a part this year in enabling us to meet our targets."
The second and third parts, which will be of DM 125 million each, will be placed approximately 45 and 90 days from now, on conditions to be negotiated in due time.
With the new issue in Germany signed today the World Bank has raised $804 million equivalent in the first half of its current fiscal year.