The World Bank and a group of Japanese trust banks today signed in Tokyo a Yen 30 billion (about US$ 233 million) loan agreement. The final maximum maturity is 20 years. The interest rate will be fixed during the first five years at 5.7 percent, payable semiannually, 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 reset date at par. The proceeds are being used to refinance the 8.4 percent loan of 1984, due March 26, 1996 from the same group of lenders.
The Mitsui Trust and Banking Company, Ltd. is the lead manager and agent for the loan. The group of lenders consists of seven banks.