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PRESS RELEASE July 5, 1977

World Bank Proposes $750 Million Bond and Note Issue

The International Bank for Reconstruction and Development (World Bank) today announced the proposed offering of $750 million aggregate principal amount of securities, consisting of $250 million Five-Year Notes due August 1, 1982, $250 million Ten-Year Notes due August 1, 1987, and $250 million Twenty-Five Year Bonds due August 1, 2002.

The offering, which is expected to take place on or about July 19, 1977 will be made by a nationwide group of underwriters managed by The First Boston Corporation, Salomon Brothers and Morgan Stanley & Company, Incorporated.

Net proceeds to the World Bank from the sale of the notes and bonds will be used in the general operations of the Bank.

The securities will be direct unsecured obligations of the Bank. The Five-Year Notes and Ten-Year Notes wi1l be non-redeemable prior to maturity. The Bonds will be non-redeemable prior to February 1, 1990, and will provide for a sinking fund calculated to retire 92% of the issue prior to maturity.

In addition to the initial delivery of the Bonds, the Bonds will also be offered by the Bank through the underwriters for sale on a delayed delivery basis to certain institutional purchasers. Delayed delivery sales will be made under contracts providing for delivery on February 1, 1978, and such other dates as may be agreed to by the Bank.

The International Bank for Reconstruction and Development, known as the World Bank, is headquartered in Washington, D.C. and has been in operation since June 1946. Its membership comprises 129 governments around the world. 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 long-term growth of international trade and improved living standards. From its establishment to March 31, 1977, the Bank had approved loan commitments in an aggregate principal amount equivalent to about $36 billion to finance programs and projects in 98 countries. The loan commitments effective and held by the Bank as of March 31, 1977, totaled approximately $26 billion of which the undisbursed balance was approximately $ 11 billion.

NOTE: Money figures are expressed in US dollar equivalents.