The World Bank and a consortium of Japanese long-term credit banks, insurance companies and other financial institutions today signed in Tokyo a Yen 60 billion (about US$ 466 million) loan agreement. The loan will bear interest at the rate of 5.7 percent, payable semi-annually and will have a final maturity of 15 years. After 7 years the interest rate will be reset at the then prevailing long-term prime rate, subject to a ceiling of 5.7 percent and a floor of 5.2 percent. The Bank will use part of the proceeds of the loan to refinance the 8.4 percent loan of 1984 due 1996 from the same group of lenders.
The Industrial Bank of Japan, Limited, the Long-Term Credit Bank of Japan, Limited, The Bank of Tokyo, Ltd., The Nippon Credit Bank, Ltd. and Nippon Life Insurance Company are joint lead-manager for the transaction. The Dai-Ichi Mutual Life Insurance Company, The Meiji Mutual Life Insurance Company, Sumitomo Life Insurance Company, Asahi Mutual Insurance Company and the Tokio Marine and Fire Insurance Company, Limited, are co-managers. The Bank of Tokyo, Ltd., is also the agent for the loan.