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PRESS RELEASE November 22, 1978

World Bank Approaches $4.3 Billion Borrowing Target For Its Fiscal Year 1979

The International Bank for Reconstruction and Development (the World Bank) announced that with yesterday's public issue in the German market, the Bank has borrowed, in the present fiscal year, about $3.6 billion in the public and private capital markets and from Central Banks or government instrumentalities. It has thus successfully met its public and private capital market borrowing target within the first five months of its fiscal year 1979. There remain only three scheduled refinancing operations with Central Banks and one with a private financial institution to reach the World Bank's borrowing program of $4.3 billion for the Bank's fiscal year ending June 30, 1979.

The operations to date attributed to the FY 79 program were comprised of 18 public issues or private placements throughout the world totaling the equivalent of $2,700 million or 75% of total funds raised and six issues placed with official sources (member governments of the Bank, Central Banks and government instrumentalities) totaling $900 million or 25% of the funds raised.

The $3,600 million in borrowings since July 1, 1978, consisted of $775 million equivalent denominated in Deutsche mark; $1,035 million equivalent denominated in Japanese yen; $1,440 million equivalent denominated in Swiss francs and $350 million in United States dollars.

Of these borrowings, $2,970 million represented new funds and $630 million represented specific refinancing of outstanding borrowings with the Deutsche Bundesbank, the Central Bank of the Federal Republic of Germany; The Bank of Japan; and a sale of Two Year Bonds to Central Banks throughout the world.

Included in the Bank's program was the largest single public issue of bonds ever offered by the World Bank in any market, a public issue in Japan of 75 billion yen or about $366 million equivalent at the time of issue. The Bank also executed transactions which represented the largest private placements by any issuer in the Japanese yen syndicated loan market. During the period, the Bank also concluded its largest Deutsche mark multi-tranche borrowing operation in the German market in the amount of DM 900 million or about $435 million equivalent. In Switzerland, the Bank made its largest public offerings; two public issues of SwF 250 million each, aggregating approximately $300 million equivalent.

The Bank's costs for the $3.6 billion borrowed since July 1, 1978, weighted by the amount of the issues, averaged 5.87%. The average life of the $3.6 billion borrowed was 8.9 years. The average cost of the $26.2 billion of total outstanding debt of the World Bank at October 31, 1978 was 7.42%. The average cost of all Bank resources, including paid-in capital and accumulated earnings, was 6.14% at the same date. The Bank held liquid resources of approximately $10.6 billion on October 31, 1978 in various currencies.