Robert S. McNamara, President, signed documents today in Washington authorizing a public Issue of the Bank's bonds in Japan.
The documents authorize an issue of 12 billion yen of 7.5% Ten-Year Bonds that will be offered in the Japanese market by a syndicate of underwriters headed by The Nikko 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 October 20, 1971, with a final maturity of October 20, 1981. The bonds will be redeemed at par in equal instalments of ¥ 1.2 billion each from 1977 through 1980 with a final instalment of ¥ 7.2 billion payable on October 20, 1981.
This is the World Bank's second public issue in the Japanese market. The first issue was offered in June 1971 and amounted to ¥ 11 billion of 7 3/4% Ten-Year Bonds offered to the public at 99-5% of par.
A further agreement was signed in Washington today providing for the subscription of ¥ 6 bi11ion of World Bank obligations by The Bank of Japan. The interest rate of The Bank of Japan loan to the World Bank is 24%. It is repayable in three instalments of ¥ 2 billion each on September 29, 1975, March 29, 1976 and September 29, 1976. This is the sixth loan by The Bank of Japan to the World Bank since February 1970, and brings the total of such loans from The Bank of Japan to ¥ 157 billion.
The total funds raised by the World Bank in Japan, inclusive of the issues announced today, will amount to ¥ 180 billion equal to approximately $500 million.
