The International Bank for Reconstruction and Development (World Bank) announces the first public offering of its bonds in Venezuela. The issue amounting to Bolivares 100,000,000 will be titled "IBRD Bonds – First Issue."
Simultaneously with the World Bank offering, the Inter-American Development Bank is offering an equal amount of Bolivar Bonds bearing the same interest rate and offered on the same terms. These are the World Bank's and the Inter-American Development Bank's first public offerings in Latin America and the two issues are the first to be authorized in Venezuela under the new requirements for public offerings of securities by an international organization.
The World Bank's bonds, dated March 1, 1974, and bearing interest of 7% per annum were sold to a group of Venezuela commercial banks at 97% of par to provide a yield of 7.5%. Banco de Venezuela heads a group of purchasing banks which also includes Banco Union, Banco Nacional de Descuento, Banco Caracas, Banco del Centro Consolidado, Banco Royal Venezolano, Banco Provincial de Venezuela and Banco Italo-Venezolano.
The bonds will be repaid in 20 semi-annual installments, to be drawn by lot, of Bs 5,000,000 each starting September 1, 1977. Repayment of the final installment will be March 1, 1987. The bonds are not subject to prior redemption.
Interest on the bonds has been exempted from payment of Venezuelan income taxes.
The documents covering issuance and sale of the bonds were signed in Caracas by a representative for the purchasing banks and by Raymond E. Deely, Chief, Securities Division, for the World Bank.
The fiscal agency agreement covering the issue was signed on behalf of the Banco central de Venezuela by its President Dr. Alfredo Lafee and on behalf of the World Bank by Mr. Deely.