Mr. Robert S. McNamara, President of the International Bank for Reconstruction and Development (World Bank), announced today that the World Bank intends to offer $200,000,000 principal amount of five-year notes dated January 15, 1971 and maturing January 15, 1976. The notes will not be redeemable prior to maturity. The entry of the World Bank into the intermediate term market in the United States is part of the Bank's long-range borrowing program which is designed to offer Bank obligations from time to time in a variety of maturities both in and outside the United States.
Over the past few years the World Bank has considerably widened the geographical scope and sources for its funds to support its increased volume of lending. In addition to its traditional bond issues in the United States, the Bank has placed issues in significant amounts in Germany and recently also in Japan. It has also increased its resources through borrowings in The Netherlands, Switzerland, Kuwait, Saudi Arabia and Libya and through the sale of two-year bonds to Central Banks throughout the world.
The intermediate term notes will be offered by a new group of underwriters, different from the managers and underwriters of the Bank's long-term issues in the United States. The group for intermediate term borrowing will be headed by The First Boston Corporation, Morgan Stanley & Co., and Salomon Brothers.
The World Bank's last borrowing in the United States was an issue in July 1970 of $200,000,000 of Twenty-Five Year Bonds.
The guidelines for foreign investment established under the President's Balance of Payments Program applicable to banks and non-bank financial institutions do not apply to the purchase of securities issued by the World Bank.
