The World Bank and a consortium of Japanese insurance companies today signed an agreement for a transferable loan to the World Bank totaling Yen 30 billion (about $209 million). The loan consists of two tranches, each in the amount of Yen 15 billion. Tranche A will carry an interest rate of 4.9%, payable semi-annually and will have a final maturity of 21 years, repayable in full on July 1, 2008; Tranche B will carry an interest rate of 5.0%, payable semi-annually and will have a final maturity of 30 years, repayable in full on July 1, 2017.
This is the second loan consisting exclusively of life insurance companies. The first loan was extended in December, 1986. The loan carries transferable participations.
Nippon Life Insurance Company is the lead-manager. The Dai-Ichi
Mutual Life Insurance Company is the co-lead manager. The Bank of Tokyo is the agent for the loan.
The proceeds of this issue will be used in the general operations of the World Bank.