Citibank has arranged a four-member underwriting group for an offer to the treasury of a one-year, $200 million loan for the Soil Products Office (TMO), the state grains board, to fund its 1996 grain purchases, Istanbul banking sources say. The offer was expected to be submitted to the treasury in the week ending 13 September.

If the treasury approves the offer, Citibank is expected to be awarded a mandate for the deal. The four members of the group, each underwriting $50 million, are Citibank, Sanwa Bank, Credit Bank and ARN AMRO, the sources say. The all-in pricing proposed for the loan is about 140-150 basis points over the London interbank offered rate (Libor).

This compares with the all-in pricing of 125 basis points over Libor for a $250 million, one-year loan arranged by Citibank for the TMO in August 1995.

However, the sources say the appetite for Turkish risk in international markets is low at present because of political and economic uncertainties.