The new Israel Development Bond issue will be launched at mass assemblies in the United States, Canada and Latin America on May 9, the sixth anniversary of Israel’s statehood, Henry Montor announced here today.
Mr. Montor, executive vice-president of the American Financial and Development Corporation of Israel, told a press conference here that the Knesset had already approved the entire issue of $350,000,000. The first bond series, totalling $75,000,000, he said, is expected to be sold in the first year.
He disclosed that the issue will also be offered in Holland and Switzerland while other states are expected to permit bond sales despite their currency restrictions since the bonds are repayable in dollars although they are purchased in local currencies.
The bonds will be repayable in 15 years, or ten if they are savings bonds, and will pay four percent interest. Bonds of the current Independence issue may be converted into the new Development bonds so that holders of the former, which only pay three and a half percent, will not be discriminated against.
Mr. Montor said that the Independence Bond issue had grossed $136,000,000 and was Israel’s main source of free dollars. In 1953, the first year in which Canada participated in the bond flotation, he said, $7,000,000 of the year’s total of $41,000,000 came from there.
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