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PRESS RELEASE June 5, 1979

World Bank Announces Largest Combined Long-Term Borrowing Operation

The World Bank has concluded arrangements for the largest combined long-term borrowing operation in its history, totaling Yen 115 billion (about US$ 524.2 million equivalent). Eugene H. Rotberg, Vice President and Treasurer of the World Bank today signed agreements in Tokyo for two syndicated loans totaling Yen 100 billion. A Yen 15 billion private placement of bonds has also been agreed upon, and the documents will be signed later this month.

The details of the transactions are as follows:

(1) a Yen 70 billion loan from a consortium of Japanese banks and insurance companies with The Industrial Bank of Japan, Limited; The Long-Term Credit Bank of Japan, Limited; and The Bank of Tokyo, Ltd., as joint lead managers; The Nippon Credit Bank, Ltd. and the Nippon Life Insurance Company, as Managers and The Dai-lchi Mutual Life Insurance Company, the Meiji Mutual Life Insurance Company, Sumitomo Mutual Life Insurance Company and the Tokyo Marine and Fire Insurance Company Ltd. as co-managers. The Bank of Tokyo, Ltd. will act as Agent for this transaction;

(2) a Yen 30 billion loan from a consortium of Japanese trust banks. The Mitsui Trust and Banking Company, Limited will act as Lead Manager and Agent for this borrowing with The Daiwa Bank, Limited, The Mitsubishi Trust and Banking Corporation, and The Sumitomo Trust and Banking Company, Limited acting as co-managers; and

(3) a Yen 15 billion private placement of bonds with a group of Japanese trust banks. The Mitsubishi Trust and Banking Corporation would act as Manager and Agent for the placement of this Issue of bonds.

Each of the three transactions has a final maturity of 20 years and is repayable in semi-annual installments on various dates in each of the years 1994 through 1999. The proceeds of these borrowings will be utilized in the general operations of the World Bank.

Mr. Rotberg, commenting on the borrowing transactions, expressed the World Bank’s appreciation to the financial institutions which provided these long term resources. He further expressed the World Bank's gratitude to the Government of Japan for granting the World Bank access to such resources.