A second 99-year private placement in Canada of Floating Rate Notes (FRNs) totaling Can$ 100 million (about US$76 million) was announced today by the International Bank for Reconstruction and Development (World Bank).
This issue, like the first issued in November 1984, was priced 45 basis points (hundredths of one percent) over the 91-day Canadian Treasury-bill rate. Interest will be payable and re-set monthly on the basis of the last Canadian Treasury-bill tender average of each month.
The borrowing is callable at par by the Bank in whole or in part on January 1, 1990, and on any later interest payment date.
The Bank entered into a purchase agreement for the issue with a group of Canadian investment banks led by Dominion Securities Pitfield Limited in association with Wood Gundy Inc. and McLeod Young Weir Limited in Toronto. The proceeds of the issue will be used to help finance the general operations of the World Bank.