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.