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PRESS RELEASE July 19, 1977

World Bank Announces Offering of $750 Million Securities

The public offering of $750 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 The First Boston Corporation, Salomon Brothers and Morgan Stanley & Co. Incorporated managers of the offering.

The offering consists of $250 million 7-1/8% Five Year Notes due August 1, 1982, $250 million 7-75% Ten Year Notes due August 1, 1987, and $250 million 8.35% Twenty-Five Year Bonds due August 1, 2002. The Five-Year Notes are priced at 100%, the Ten-Year Notes at 100% and the Twenty-Five Year Bonds at 100%.

The securities are direct unsecured obligations of the Bank, and the proceeds there of 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 Twenty-Five Year Bonds are not redeemable prior to February 1, 1990. On and after that date, the Bonds will be redeemable at 102-1/2% to and including July 31, 1993 and at decreasing prices thereafter, plus accrued interest. The Bonds are also redeemable through mandatory sinking fund payments at 100%. The mandatory sinking fund is calculated to retire 92% of the Bonds prior to maturity.

In addition to initial delivery, which is expected on August 3, 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 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 interest of promoting the long -term growth of international trade and improved living standards. From its establishment to March 31, 1977, the Bank had approved loans 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.

 


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