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PRESS RELEASE August 11, 1971

World Bank Announces Public Offering of $175 Million 25-Year Bond Issue

"The First Boston Corporation and Morgan Stanley & Co. Incorporated, as managers of the underwriting group, announce the public offering today of $175,000,000, International Bank for Reconstruction and Development (World Bank) Twenty-Five Year 8-1/8 per cent Bonds of 1971, due August 1, 1996, at a price of 100 per cent.

"The new bonds are not redeemable prior to February 1, 1984. They are redeemable on or after February 1, 1984, at the option of the Bank as a whole or in part at any time at 102½ per cent to and including July 31, 1987 and at decreasing prices thereafter, and through operations of the sinking fund at 100 per cent, together, in each case, with accrued interest. The sinking fund is calculated to retire 50 per cent of the issue prior to maturity. The bonds being offered are not subject to the Interest Equalization Tax.

"The Guidelines for banks and nonbank financial institutions issued by the Board of Governors of the Federal Reserve System under the President's Balance of Payments Program place no restraint on purchases of securities of the Bank by United States banks or nonbank financial institutions to which such Guidelines apply. The Guidelines do not establish a ceiling on the purchase of securities of the Bank and do not require the inclusion of such securities among the assets to which the ceilings apply.

"In addition to the initial deli very of the bonds, which is expected on August 25, 1971, bonds will also be offered for sale on a delayed delivery basis through the underwriters to certain institutional purchasers. Delayed delivery sales will be made under contracts providing for delivery on February 2, 1972, August 2, 1972, February 7, 1973 and August 1, 1973.

The net proceeds to the Bank of the sale of the bonds to the underwriters and under the contracts for delayed delivery will be used in the general operations of the Bank.

“The International Bank for Reconstruction and Development is an international institution, the members of which are governments now numbering 116. Its principal purpose is to assist the economic development of its member countries by facilitating the investment of capital for productive purposes."