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PRESS RELEASE August 10, 1977

World Bank Offers Two Japanese Yen Securities

Two offerings aggregating ¥ 50,000 million of securities of the International Bank for Reconstruction and Development (World Bank) were announced today (August 10) in Tokyo and London. One issue of 7% Fifteen-Year Bonds-Seventh Series amounting to V 30,000 million (US$113 million) is being offered in the domestic market in Japan. The other issue V 20,000 million (US$75 million) of 6-1/4% Seven-Year Bonds is being offered in the international capital market.

The 7% Fifteen-Year Bonds offered in Japan are priced at 99.75% with interest payable semi-annually to yield 7.03%. It is being offered by a syndicate of Japanese securities firms headed by Daiwa Securities Company, Limited and in association with a group of commission companies headed by The Industrial Bank of Japan, Limited. The issue constitutes the seventh public offering of World Bank bonds in Japan and represents the largest single issue of World Bank bonds to be sold in the Japanese market.

The Fifteen-Year Bonds are not redeemable prior to August 19, 1983. The World Bank will redeem at par, or through purchases in the market, ¥ 1,800 million principal amount of bonds in each of the years 1983 through 1991. A final installment of V 13,800 million will be repaid at maturity on August 19, 1992, resulting in an average life of 12.3 years for the issue. The World Bank at its option may prepay the Fifteen-Year issue, in whole or in part, on August 19, 1983 or on any subsequent interest payment date at declining prices commencing in 1983.

The 6-1/4% Seven-Year Bonds offered in the international capital market are priced at 100% with interest payable annually to yield 6.16% on a semi-annual equivalent basis. Managers for the international market issue are Daiwa Securities Company, Limited, and S.G. Warburg & Company, Limited, and include Nomura Europe N.V., The Nikko Securities Company (Europe) Limited, Yamaichi International (Europe) Limited, The Bank of Tokyo (Holland) N.V., IBJ International Limited and Nippon European Bank S.A. The Seven-Year Bonds may not be redeemed prior to maturity.

Total funds raised by the World Bank denominated in Japanese Yen, including the two issues announced today, amount to ¥ 651,800 million (US$ 2,455 million). Inclusive of the issues announced today¥ 492,360 million (US$1,855 million) remain outstanding.