The World Bank signed today an agreement with the Deutsche Genossenschaftsbank for a private placement of Deutsche Mark Notes in the principal amount of DM 150 million. The interest rate on the Notes is 8-1/8% per annum, payable annually on October 15. The issue price is par. The Notes will be repaid at par on October 15, 1988 and will be non-callable. The Notes will be placed with cooperative banks in Germany and several other European countries and Japan.
The proceeds of the issue will be used in the general operations of the World Bank.