A new issue of World Bank bonds denominated in Deutsche Mark will be publicly offered in Germany on May 23 by a syndicate of German banks headed by the Deutsche Bank A.G. as manager and the Dresdner Bank A.G. as co-manager. The issue is in the amount of DM 250 million (US$62.5 million equivalent) and will carry a coupon of 6½%; it will have final maturity on June 1, 1984 and is being offered at 98½%. Total World Bank borrowings to date in the fiscal year 1969 now amount to the equivalent of $1,186.3 million.
The bonds of the new issue will be repayable at par beginning June 1, 1975 in 10 equal annual installments. The World Bank will be entitled to redeem all outstanding bonds at par on any interest payment date beginning June 1, 1975. Interest will be payable semi-annually on June 1 and December l with the first payment due December 1, 1969.
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.