Sir Denis Rickett, Vice President, signed documents today at the Tokyo Office of the World Bank authorizing the Bank's first public issue in Japan.
Yen bonds totaling 11 billion with ten-year maturity at 7-3/4% annual interest will be offered in the Japanese market by a syndicate of underwriters headed by The Nomura Securities Co., Ltd., in association with a group of commissioned banks headed by The Industrial Bank of Japan, Limited.
The bonds will be offered at a price of 99.5% of par. They are dated June 30, 1971, and are due 1977/1981, with a final maturity of July 10,191.
The bonds will be redeemed at par in equal installments of ¥1.1 billion each from 1977 through 1980 with a final installment of ¥6.6 billion payable on July 10, 1981.
An agreement providing for the subscription of 7 billion in yen obligations by The Bank of Japan was also signed today. The two issues totaled yen equivalent of $50 million.
The interest rate of The Bank of Japan loan to the World Bank will be 7.43% annually. It will be repayable in three semi-annual installments of ¥2.3 billion each on June 11, 1975, and December 11, 1975, and ¥2.4 billion on June 11, 1976.
In a statement issued in Washington on the occasion of the signing of the bond issue, Mr. Robert s. McNamara, President of the World Bank, said:
“We are extremely grateful for the cooperation and the assistance of the Japanese authorities who have made possible our first public issue in Japan and another loan by The Bank of Japan.”
"By giving us access to her capital market, Japan is continuing to help the World Bank at a time when we are expanding our activities to meet the growing needs of the developing countries."
There have been four earlier issues subscribed by The Bank of Japan since early 1970 totaling the yen equivalent of $400 million.
Thus, the two agreements concluded today bring World Bank borrowing in Japan to a total in yen equivalent to $450 million. In addition, The Bank of Japan assumed the equivalent of $163 million in obligations of former borrowers in Japan early last year, in effect purchasing the early maturities of those bonds