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PRESS RELEASE February 9, 1969

World Bank Places $125 Million 25-Year Bond Issue

"An underwriting group composed of 181 investment firms and commercial banks and headed jointly by Morgan Stanley & Co. and The First Boston Corporation is placing on the market today (February 9) a new issue of $125 million International Bank for Reconstruction and Development (World Bank) Twenty-Five Year 5% Bonds of 1960. The Bonds, due February 15, 1985, are priced at 100% and accrued interest to yield 5%to maturity.

"The Bonds are not redeemable prior to February 15, 1970. As a sinking fund, the Bank will retire $3,150,000 of the issue on or before August 15 in each of the years 1970 through 1979, and $5 million on or before August 15, in each of the years 1980 through 1984. The sinking fund is calculated to retire 50% of the issue prior to maturity. The sinking fund redemption price is 100%. The Bonds are redeemable on or after February 15, 1970 at the option of the Bank at 102-1/2% to and including February 14, 1975 and at decreasing premiums thereafter.

"As in the case of other World Bank issues sold in the United States in recent years, in addition to offerings for regular delivery, the Bank is offering certain institutional investors the privilege of taking delayed delivery of the Bonds on one or more quarterly dates through February 15, 1962.

A commitment fee at the rate of 3/4% per annum from February 24, 1960 will be paid by the Bank under delayed delivery contracts. The purpose of the delayed delivery arrangement is to enable the Bank to co-ordinate a portion of its borrowings with loan disbursements and to permit purchasers of the Bonds to suit individual preferences in the light of their own projected cash positions.

"This offering marks the eleventh issue of World Bank Bonds to be marketed in the United States on a negotiated basis by underwriting groups headed by Morgan Stanley & Co. and The First Boston Corporation. The last previous sale was a $100 million issue of Fifteen-year 4-1/2% Bonds in November 1958. The net proceeds of the issue will be used in the general operations of the Bank.

“Giving effect to the present issue, to retirement of $25 million 4-3/8% Notes of 1957, to delivery of bonds under delayed contracts, and to the issue of $13,961,605 equivalent of Twelve-year Swiss franc Bonds of 1960 and to $47,619,048 to be drawn down under a Deutsche Mark borrowing arranged in December 1959 and to be drawn down after January 31, 1960, the Bank's funded debt will be $2,159,402,654 which includes $l,749,866,000 payable in U.S. dollars and the equivalent of $409,536,654 in other currencies.

“From its establishment to December 31, 1959, the Bank had entered into loan commitments in an aggregate principal amount equivalent to $4,871,037,893 to finance programs and projects in 51 countries. The loan commitments effective and held by the Bank on December 31, 1959, totaled $3,531,488,550, of which the undisbursed balance was $862,453,852."