The following announcement is being made in Canada today by A.E. Ames & Co., Limited, Wood Gundy Limited and Dominion Securities Corporation Limited.
"A new issue of $25 million 7¼% Eight Year Canadian Dollar Bonds of the International Bank for Reconstruction and Development (World Bank) is being offered today (October 14, 1971) by a syndicate of investment dealers and banks headed by A.E. Ames & Co., Limited, Wood Gundy Limited and Dominion Securities Corporation Limited. The new issue, which will mature on November 1, 1979, is being offered at 99.75%.
“This is the World Bank's eighth offering of its bonds in Canada. The last issue was offered in January 1968.
“The new bonds are not redeemable prior to maturity and there is no provision for a purchase or sinking fund.
"The principal business of the Bank is making loans for economic development in its member countries. From the time the Bank began operations in June 1946 to August 31, 1971, it had entered into loan commitments in an aggregate of $16.7 billion in 90 countries, principally for basic development projects in such fields as electric power, transportation and communications, in industry and agriculture and forestry. Of these loans the Bank had sold $2.37 billion and a further $2.52 billion had been repaid to the Bank.
"One hundred and sixteen governments are members of the World Bank and have subscribed to US$23.9 billion of capital, of which the equivalent of about US$2.39 billion is paid in and the remainder is callable only if and when required to meet obligations of the Bank.
"To August 31, 1971, the Bank had accumulated total reserves of more than $1.5 billion. For the first two months of the fiscal year to August 31, 1971, the Bank had unallocated net income amounting to nearly $32 million.
"On a pro forma basis, after completion of the current offering and other adjustments, the outstanding funded debt of the World Bank will approximate the equivalent of US$5.8 billion."