The World Bank and a syndicate of German Banks headed by the Deutsche Bank A.G., as manager, and the Dresdner Bank A.G., as co-manager, signed today an agreement covering a new issue of World Bank Deutsche Mark Bonds. The principal amount of the issue is DM 200 million. The interest rate on the issue is 7-1/2% payable annually on June 1. The bonds will be publicly offered at 99-1/2%. The issue will be repayable at par, after a five-year grace period, in ten equal annual instalments on June 1 of each of the years 1977 to 1986.
The German withholding tax of 25% on interest payments made to non-residents will not apply to these Bonds.
The Bonds will be listed on all German Stock Exchanges. The proceeds of this issue will be used in the general operations of the Bank.