DM 500 million bond issue signed
The treasury signed a DM 500 million ($350 million), three-year bond facility for balance of payments purposes in Frankfurt on 18 August. This was its third such borrowing since re-entering the international markets with a $500 million syndication in April.
The consortium of 21 banks underwriting the bonds is led by Commerzbank. The issue is priced at 2.95 per cent over the London interbank offered rate (Libor).
Following shortly after a 70 million Euroyen bond issue, the facility means that the treasury has already raised around $1,662 million of the total $1,500 million-2,000 million it seeks in fresh external financing this year, according to treasury officials.
The treasury has mandated another Eurobond issue, valued at $150 million, to JP Morgan, and has also mandated Chase Manhattan Bank to arrange a $1,500 million medium-term note programme.