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PRESS RELEASE April 19, 1977

World Bank Announces Offering of $600 Million Note And Bond Issue

The public offering of $600 million aggregate amount of securities of the International Bank for Reconstruction and Development (World Bank) through a nationwide syndicate of Investment banking and dealer firms was announced today by Morgan Stanley & Co. Incorporated, The First Boston Corporation and Salomon Brothers, managers of the offering.

The offering consists of $200 million 7 percent Five Year Notes due May 1, 1982, $200 million 7.65 percent Ten Year Notes due May 1, 1987 and $200 million 8* percent Twenty-Five Year Bonds due May 1, 2002. The Five-Year Notes are priced at 100 percent, the Ten-Year Notes at 100 percent and the Twenty-Five Year Bonds at 991 percent to yield 8.32 percent.

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 Ten-Year Notes may not be redeemed prior to maturity. The Twenty-Five Year Bonds are not redeemable prior to November 1, 1989. On and after that date, the Bonds will be redeemable at 102.5 percent to and including April 30, 1993 and at decreasing prices thereafter, plus accrued interest. The mandatory sinking fund is calculated to retire 92 percent of the Bonds prior to maturity.

In respect to the Bonds, in addition to initial delivery, which is expected on May 5, 1977, the Bonds are also offered by the Bank through the underwriters for sale on a delayed delivery basis to certain institutional purchasers. Delayed delivery sales provide for delivery on August 12, 1977 and such other dates as may be agreed to by the Bank.

Including the current offerings, 42 public Issues of World Bank bonds and notes have been sold In the U.S. market in an aggregate amount of $7.3 billion of which $5.5 billion is outstanding.

The Bank, which began operations in 1946, is an International Institution the members of which are governments. At the present time, it has 129 governments as members.

The principal purpose of the Bank is to promote the economic development of its member countries, primarily by providing loans for specific projects and related technical assistance, in the Interests of promoting the long-term growth of international trade and improved standards of living.

From its establishment to December 31, 1976, the Bank had approved loan commitments in an aggregate principal amount equivalent to about $35 billion to finance projects and programs in 98 countries. Effective loans held by the Bank, on that date, amounted to about $25 billion including some $11 billion of loans not yet disbursed.