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PRESS RELEASE February 22, 1972

World Bank to Borrow DM 400 Million

The World Bank announced today that it has arranged to borrow DM 400 million. The borrowing is divided into two issues: Principal amount DM.250 million of 6 3/4% Bonds with a final maturity of fifteen years; and principal amount DM 150 million of Five-Year 6¼% Notes.

Under an agreement signed by 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, the 6 ¾% Bonds will be publicly offered at par. Interest on the Bonds will be payable annually on March 1. The issue will be repayable, at par, after a five year grace period, in ten equal annual instalments on March 1 of each of the years 1978 to 1987. The Bonds will be listed on all German Stock Exchanges.

The 6¼% Five-Year Note issue is being placed at a price of 100 through an underwriting group headed by the Deutsche Bank A.G. as manager, and the Dresdner Bank as co-manager. Interest on the Notes is payable on March 1, and the issue matures on March 1, 1977.

The proceeds of the two issues will be used in the general operations of the World Bank. Including these issues the World Bank has publicly offered Deutsche Mark obligations in excess of DM 2.4 billion.