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PRESS RELEASE June 19, 1987

World Bank Announces $1 Billion Colts Program

The World Bank announced that it has begun a new series of its U.S. dollar program in Continuously Offered Longer-Term Securities (COLTS). The new series will be offered initially in an aggregate amount of up to $1 billion to U.S. and Canadian investors.

The COLTS program has extended -- to 30 years and beyond -- the range of maturities available in the medium-term note market, in which 2- to 5-year maturities predominated. The initial program of $481 million outstanding was sold in a range of maturities of 3 to 30 years, with an average maturity of 14 years.

The expanded COLTS program will continue to offer investors the opportunity to acquire AAA / Aaa-rated World Bank assets that precisely match the maturity and cash flow characteristics needed to meet their portfolio objectives. It will provide the Bank with sustained access to U.S. dollar borrowings in the North American market.

The World Bank's COLTS program provides maturities of from 3 to over 30 years. COLTS may be offered as fixed-rate, zero coupon or deep discount securities. Later, the Bank also expects to offer variable rate and amortizing securities on a continuous basis. There is an active secondary market in COLTS.

COLTS will be sold through five agents: The First Boston Corporation, Goldman, Sachs & Co., Merrill Lynch Capital Markets, Morgan Stanley & Co. Incorporated, and Shearson Lehman Brothers Inc.

The World Bank's capital stock is owned by 151 countries. From its establishment in 1946 to December 31, 1986, the Bank has made loans exceeding $131 billion to, or guaranteed by, member countries. These loans are financed by the Bank predominantly through the sale of its obligations to institutional and other investors, as well as through retained earnings and the paid-in capital of stockholders. The Bank has made a profit each year since 1947,and reported earnings of $655 million in the first half of its 1987 fiscal year, following record earnings of $1.2 billion in fiscal 1986. As of March 31, 1987, the Bank's cash and liquid investments stood at $20.7 billion.