The World Bank has issued 10-year bonds totaling Yen 10 billion ($69 million equivalent) for private placement in Japan. The bonds carry an interest rate of 4.80 percent a year, payable semi-annually, and are priced at par. They have a final maturity of July 20, 1997.
This borrowing would be the first private placement to be arranged for the World Bank by a group of Japanese regional banks. In the past, World Bank borrowings that directly involved the regional banks took the form of syndicated loans. The Bank of Yokohama is the lead-arranger of this bond placement and is also acting as the paying agent. Members of the arranging group, which includes two other regional banks, are also expected to participate as final investors in the bonds.
Mr. Koji Kashiwaya, Director of the Tokyo office of the World Bank, who today signed the agreements for the private placement in Tokyo on behalf of the Bank, expressed the Bank's appreciation for this further demonstration of support from the Japanese authorities and the investing institutions toward the development efforts of the World Bank.