A borrowing in the euro Canadian market consisting of Can$150 million ($112.7 million) 9-3/4 percent 5-year notes due July 29, 1992 was announced today by the International Bank for Reconstruction and Development (The World Bank). The bonds were offered at 101-5/8 and are noncallable. The yield to subscribing investors is 9.12 percent on a semiannual equivalent basis. This is the Bank's third euro Canadian dollar issue and its first Canadian dollar borrowing for its 1988 fiscal year which begins today.
The bonds were offered by Wood Gundy Inc., as lead manager and a group of comanagers comprised of Algemene Bank Nederland N.V., Banque Bruxelles Lambert S.A., CIBC Limited, Credit Suisse First Boston Limited, Deutsche Bank Aktiengesellschaft, Dominion Securities Inc., Goldman Sach International Corp., McLeod Young Weir International Limited, Merrill Lynch Capital Markets, Morgan Stanley International, Nomura International Limited, Orion Royal Bank Limited, Salomon Brothers International Limited, Societe Generale, Swiss Bank Corporation International Limited, and Union Bank of Switzerland (Securities) Limited.
The net proceeds from the sale of the bonds will be used in the general operations of the World Bank.
The Bank is headquartered in Washington, D.C. and has been in operation since June 1946. Its membership comprises 151 government. 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 living standards. Its principal activity is providing loans and related technical assistance for specific projects and for programs of economic reform in developing member countries. From its establishment to March 31, 1987, the Bank had approved loans in the aggregate amount of $133.7 billion to finance projects or programs in 104 countries.