A $150 million, one-year syndicated loan for pre-export financing was signed by Yapi & Kredi Bankasi in London on 8 November. The loan was arranged and is fully underwritten by UBS.

This is the first time Yapi & Kredi Bankasi has borrowed internationally since a $75 million facility arranged by Gulf International Bank (GIB) in 1993.

The present loan has been syndicated amongst a total of 28 banks. A subsidiary underwriting group includes Dresdner Bank, Credit Lyonnais, First Union National Bank, Bank of New York and Sanwa Bank.

The loan carries interest of 50 basis points above the London interbank offered rate (Libor), and an all-in cost of 80 basis points above Libor. Banking sources say this is the lowest interest rate obtained yet from the international markets in a recent flurry of loan actitivity by domestic institutions.