A $100 million five-year commercial paper programme for Garanti Bankasi looks likely to go on sale in the US markets from 31 July.

The transaction is being organised by Bank of America with Bayerische Vereinsbank as the letter of credit fronting bank.

The rated papers will have maturities ranging between seven-240 days, the upper limit laid down by US legislation, and will also be renewable each year of the programme. The sale will follow ratings by US agencies Standard & Poor’s and Moody’s Investors Service.

The papers are short-term, private sector borrowing bills, which are normally issued over discounted rates, and with no coupons.

Interest tends to range between about 10-15 basis points either side of the London interbank offered rate (Libor) due to the short-term nature of the instrument.

Garanti first issued a commercial paper programme in 1994 for a maximum $300 million arranged by UBS in the European markets. However, this deal was not rated.