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PRESS RELEASE December 10, 1975

The World Bank Offers $750 Million of Securities

New York December 10, 1975: The following announcement has been made in New York today:

"Robert S. McNamara, President of the International Bank for Reconstruction and Development (World Bank) announced the public offering of $750 million aggregate amount of securities by the Bank, through a nationwide syndicate of investment banking and dealer firms managed by Morgan Stanley & Co. Incorporated, The First Boston Corporation and Salomon Brothers.

"The offering consists of $250 million of 8. 35%. Five Year Notes, due July 1, 1981; $250 million of 8.85% Ten Year Notes, due July 1, 1986; and $250 million of 9.35% Twenty-Five Year Bonds, due July 11, 2001. The Five Year Notes are priced at 100%, the Ten Year Notes at 100% and the Bonds at 100%.

"The securities are direct unsecured obligations of the Bank and the proceeds thereof will be used in the Bank's general operations.

"The Five Year Notes and the Ten Year Notes may not be redeemed prior to maturity. The Bonds are not redeemable prior to Jan 1, 1989. On and after that date, the Bonds will be redeemable at 102-3/4% to and including December 14, 1991 and at decreasing prices thereafter to 100% on and after December 15, 1995, plus accrued interest. A mandatory sinking fund, together with payment of $20 million at maturity on December 15, 2000, is calculated to retire 100% of the Bonds.

"In addition to the initial delivery of the securities, which is expected on December 23, 1975, Notes and Bonds are also offered by the Bank, through the underwriters, for sale on a delayed delivery basis, to certain institutional investors. Delayed delivery sales provide for delivery on January 21, 1976, July 8, 1976 (in the case of Bonds only) and such other dates as may be agreed to by the Bank.

"In commenting on the issue, Mr. McNamara pointed out that this is the largest public offering of World Bank securities, to date. Mr. McNamara stated that the first issue of World Bank securities was offered in the United States market on July 11, 1947, and since then this market has been a major source of financing for the Bank's lending operations. Including the current offering thirty-four public issues of Bank Bonds and Notes have been sold in the United States market in an aggregate of about $5.4 billion.

"The Bank, which began operations in 1946, is an international institution the members of which are governments. At the present time, it has 127 governments as members.

The principal purposes of the Bank are:

(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. "From its establishment to September 30, 1975, the Bank had approved loan commitments in an aggregate principal amount equivalent to about $29 billion to finance programs and projects in 94 countries."

Note: Money figures are expressed in US dollar equivalents.