The World Bank and a group of Japanese trust banks today signed in Tokyo a Yen 25 billion ($186 million) loan agreement. The final maximum maturity is 20 years. The interest rate will be fixed during the first five years at 5.7% payable semi-annually, and thereafter at the Japanese long-term prime rate prevailing at the beginning of each subsequent five-year period. The Bank has a call option on each interest resetting date at no premium.
The Mitsubishi Trust and Banking Corporation is the lead manager and agent for the loan. The group of lenders consists of seven banks. The proceeds are being used to refinance the 8.6% loan of 1983, due September 26, 1995 from the same group of lenders.