The International Bank for Reconstruction and Development {World Bank) today entered into an Underwriting Agreement for an issue of £ 100 million Loan Stock 2003. The Stock will carry a rate of interest and be issued at a price to produce a gross redemption yield of 0.85 % over the gross redemption yield on the 13-1/2% Treasury Stock 2004-08 at close of business on August 15, 1984. The basis of allotment will be announced by August 17, 1984 and dealings will commence on the same day.
The new issue is expected to be a further tranche of the Bank's existing £ 100,000,000 11-1/2% Loan Stock 2003 and to be merged with the existing issue in April 1985. The principal amount of the consolidated issue would then be £ 200,000,000.
The issue has been underwritten in full by a group of London merchant banks under the lead management of Baring Brothers & Co., Limited. The other managers are Hambros Bank Limited, Hill Samuel & Co., Limited, Kleinwort, Benson Limited, Lazard Brothers & Co., Limited, Morgan Grenfell & Co. Limited, N.M. Rothschild & Sons Limited, J. Henry Schroder Wagg & Co. Limited, and S.G. Warburg & Co. Ltd. Brokers to the issue are Cazenove & Co., W. Greenwell & Co. and Rowe & Pitman.
The net proceeds to the World Bank from this borrowing will be used in the general operations of the Bank.
The Bank is headquartered in Washington, D.C. and has been in operation since June 1946. Its membership comprises 146 governments around the world. The principal purpose of the Bank is to promote the economic development of its member countries in the interest of fostering the long-term growth of international trade and improved standards of living. Its principal activity is providing loans for specific projects and related technical assistance. From its establishment to June 30, 1984, the Bank had approved loan commitments in an aggregate principal amount equivalent to about $102.8 billion to finance programs and projects in 102 countries.
