"A public offering by the International Bank for Reconstruction and Development (World Bank) is being made today of an aggregate of $500 million of notes, consisting of $300 million of Five-year notes, to January 1, 1980 and $200 million of Ten-year notes due January 1, 1985.
The Five-year notes carry an 8 per cent interest rate and are priced at 100.284 per cent plus accrued interest from January 1, 1975 to yield 7.93 per cent to maturity. The Ten-year notes carry an 8.15 per cent interest rate and are priced at 100 per cent plus accrued interest from January 1, 1975.
The offerings are being made by an underwriting group managed by Salomon Brothers, The First Boston Corporation and Morgan Stanley & Co. Incorporated.
The notes are direct, unsecured obligations of the Bank, and are non-redeemable prior to maturity. The proceeds from the sale of the notes will be used in the general operations of the Bank.
The Bank, which began operations in 1946, is an international institution the members of which are governments. At the present time, it has 125 governments as members.
The principal purposes of the Bank are as follows:
(a) To assist in the reconstruction and development of its member countries by facilitating the investment of capital for productive purposes, thereby promoting the long-range growth of international trade and the improvement of standards of living;
(b) To promote private foreign investment by guarantees of or participations in loans and other investments made by private investors;
(c) When private capital is not available on reasonable terms, to supplement private investment by making loans for productive purposes out of its own resources or funds borrowed by it.