The World Bank will prepay on July 9 1987 and July 17 1987 the total amount outstanding of two Swiss franc public issues in the first of what could be a series of similar moves in other capital markets a spokesman for the Bank said in a telephone call from Washington. The prepayments cover 96 mln Swiss francs of 6-1/2 pct Swiss franc bonds of 1976 and due 1991 lead managed by Swiss Bank Corporation and 100 mln Swiss francs of 7-3/8 pct bonds of 1981 and due 1991 lead managed by Credit Suisse. Eugene Rotberg World Bank vice president-treasurer said in a prepared statement that the prepayments are being made because of the substantial decline in interest rates over the past two years the spokesman said. The World Bank intends to exercise early redemption on selected public issues of its securities in Switzerland and other capital markets if the exercise is financially beneficial and consistent with the Banks overall funding strategy. Last month Rotberg said that the World Bank planned to bring forward to the first half of 1987 its borrowing plans for the year because of its expectations that world interest rates will rise by the year end.
WORLD BANK TO REDEEM EARLY TWO SWISS FRANC BONDS