The World Bank and a group of Japanese trust banks today signed in Tokyo a Yen 35 billion (about $242 million) loan agreement. The final maximum maturity is 20 years. The interest rate will be fixed during the first five years at 6.0% 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 reset date at par. The new loan is a refinancing of the 8.0% loan of 1984, due 1996 from the same group of lenders which will be prepaid on August 31, 1989.
The Sumitomo Trust and Banking Company, Limited. is the lead manager and agent for the loan. The group of lenders, consists of seven banks.