A three-year Eurobond issue launched on 23 May was increased the following day to $500 million from an original $400 million.

Arranged by JP Morgan and UBS, the transaction is the fifth balance of payments borrowing by the treasury so far in 1996.

The bonds carry a coupon rate of 8.25 per cent and payment date is 11 June. Bankers note the facility is priced lower than the treasury’s previous Eurodollar issue in September. However, treasury sources say the institution could have borrowed more at lower interest had there been a strong government and a stable political outlook.

The treasury’s last borrowing prior to the present facility was a Y30,000 million ($285 million) six-year Eurobond issue carrying a coupon of 6 per cent, and underwritten by Yamaichi (MEED 24 :5: 96)