A $300 million Eurobond was successfully launched and placed in the international markets on 20 September for the treasury by lead manager JP Morgan & Company. The bonds are expected to be issued in late September or early October after completion of documentation.

The three-year bonds carry a coupon of 8.75 per cent, equivalent to an interest rate of 300 basis points over the London interbank offered rate (Libor). The Eurobond was launched at $200 million, but later increased as expected to $300 million in response to demand. Europe accounted for 47 per cent of the bonds purchased, the Middle East for 16 per cent, Asia for 9 per cent and the US for 8 per cent.

With the issue, the treasury will have raised most, if not all, of the estimated $2,000 million in fresh external commercial financing it requires for balance of payments purposes in 1995. The treasury re-entered the markets in April with a $500 million syndicated loan, after more than a year of absence during economic crisis, and last tapped the international markets in late July and early August, respectively, for a Y70,000 million ($700 million) bond issue and a DM 500 million ($338 million) Eurobond.