The following announcement is being made in New York by The First Boston Corporation, Salomon Brothers and Morgan Stanley & Co., Incorporated:
"The First Boston Corporation, Salomon Brothers and Morgan Stanley & Co. Incorporated, as managers of the underwriting group, announce the public offering today of an aggregate of $750 million of notes and bonds of the International Bank for Reconstruction and Development (World Bank), consisting of $250 million Five-year Notes, due July 1, 1981; $250 million of Ten-year Notes, due July l, 1986; and $250 million of Twenty-five year Bonds, due Jul y 1, 2001.
"The Five-year Notes carry an 8 per cent interest rate and are priced at 100 per cent plus accrued interest from July 1, 1976. The Ten-year Notes carry an 8-3/8 per cent interest rate and are priced at 100 per cent plus accrued interest from July 1, 1976; and the Twenty-five Year Bonds carry an interest rate of 8.85 per cent and are priced at 100 per cent plus accrued interest from July 1, 1976.
"The Notes will be non-redeemable prior to maturity. The Bonds will be non-redeemable prior to January 1, 1989, but they will be redeemable at prices beginning at 102.75 per cent at decreasing prices thereafter. The Bonds also are redeemable through mandatory sinking fund payments at 100 per cent.
Sinking fund payments are calculated to retire 92 per cent of the Bonds prior to maturity.
"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 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.
From its establishment to March 31, 1976, the Bank had approved loan commitments in an aggregate principal amount equivalent to about $31 billion to finance programs or projects in 95 countries. The loan commitments effective and held by the Bank as of March 31, 1976, totaled approximately $22 billion of which the undisbursed balance was approximately $9 billion. Money Figures expressed in U.S. dollar equivalent.
“The (unreadable) proceed from the issues will be used in general operations of the Bank.”