The World Bank and a syndicate of German banks, headed by the Deutsche Bank AG, as manager, and the Dresdner Bank AG, the Commerzbank AG and the Westdeutsche Landesbank Girozentrale as co-managers, signed today an agreement covering a new issue of DM 500 million. The interest rate of the bonds is 5-3/4% per annum, payable annually on February 1. The bonds will be offered publicly at 99.00%. The bonds will be repayable at par in four equal annual installments on February 1 in each of the years 1987 through 1990. The bonds will be listed on all German stock exchanges.
The proceeds of this issue will be used in the general operations of the World Bank. Including this issue, the World Bank has offered publicly Deutsche mark obligations aggregating about DM 5.72 billion since 1959.