The World Bank and a consortium of Japanese long-term credit banks, insurance companies and other financial institutions today signed in Tokyo a 15-year, Yen 65 billion (about $450 million) loan agreement. Interest will be payable semi-annually, with an initial interest rate of 6 .0 percent for the first S years. It will have two interest rate resets at the long-term prime rate prevailing after 5 years and after 10 years. The resets will be subject to a cap of 6% and a floor of 4. 81. Part of the new loan is a refinancing of the 8.0 percent loan of 1984 due 1996 from the group of lenders which will be prepaid on August 31.
The Industrial Bank of Japan, Limited, The Long-Term Credit Bank of Japan, Limited, The Bank of Tokyo, Ltd., The Nippon Credit Bank, Ltd., Nippon Life Insurance Company and The Dai-Ichi Mutual Life Insurance Company are joint lead-managers for the transaction. The Meiji Mutual Life Insurance Company, Sumitomo Life Insurance Company, Asahi Mutual Life Insurance Company and the Tokio Marine and Fire Insurance Company, Limited, are co-managers. The Bank of Tokyo1 Ltd. is also the agent for the loan.