The treasury will make another DM 150 million ($100 million), four-year Eurobond issue arranged by Commerzbank, officials say. This follows a DM 500 million ($332 million), four-year Eurobond successfully placed by Commerzbank in early August (MEED 23:8:96).
The coupon on the additional bonds will be 8 per cent, compared with 8. 5 per cent for the early August issue With the additional issue, the treasury will have borrowed $2,400 million from the international markets in 1996 for balance of payments purposes.
At home, offers were due on 13 September from banks for three-year bonds denominated in foreign currency. This measure is part of a government economic package announced in early July to raise fresh financial resources to cover the budget deficit and offset additional spending. It was originally designed to tap about $9,500 million of banks' reserves held abroad, but has been scaled back in the face of banking resistance.
The first issue seeks to raise about $500 million-1,000 million, State Minister Ufuk Soylemez said recently. Maximum and minimum offer rates were $150 million and $15 million for the bonds, which will carry interest of 260 basis points above the London interbank offer rate (Libor). There will also be a put option at the end of the second year.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.