Citibank is arranging a $100 million, one-year loan for the Soil Products Office (TMO) as the international markets open up again to Turkish risk, according to Istanbul sources. This will be the largest re-entry yet by a Turkish state entity to the international markets, following a $500 million loan signed by the Turkish treasury last month, they add.

The treasury is expected to issue a mandate for the deal to Citibank by 26 May, following ministerial and TMO approval, sources said. The loan will finance mandatory domestic purchases by TMO from a good grain crop expected this year, they added. The all-in price will probably be around 1.8 per cent over the London interbank offered rate (Libor), including a nominal 1.5 per cent interest spread, they say.

Citibank is also arranging a $35 million, one-year facility for state institution Vakifbank for its pre-export financings. All-in pricing will probably be around Libor plus 1.6 per cent with a nominal interest spread of 1.45 per cent above Libor. Syndication of this deal is expected to close by the end of May.