The World Bank announced today it intends to redeem on December 15, 1991, all of the outstanding 9.35 percent Twenty-Five Year U.S. Dollar Bonds of 1975, due December 15, 2000 (the "Bonds"). The Bank is selecting by lottery $40 million principal amount of the Bonds to be redeemed at par on December 15, 1991 as provided in connection with the Bank's mandatory sinking fund obligation and its optional redemption right under the provisions of the Bonds. The Bank also as elect to exercise its right, as provided in the Bonds, to redeem on December 15, 1991 all of the remaining $140 million principal amount of the outstanding Bonds at the early redemption price of 101.375 percent of par.
Bondholders will be sent a formal redemption notice on or about November 8, 1991.
Interest on the Bonds will cease to accrue on the redemption date. The fiscal agent, the Federal Reserve Bank of New York, has been requested not to make transfers or exchanges of the Bonds on or between November 1, 1991 and November 8, 1991.