TURKEY: Loan target will be achieved, says treasury

24 March 1995
NEWS

The treasury would achieve its target of $500 million for its first general purpose syndication after nearly a year of absence during economic crisis from the international markets, according to treasury sources on 14 March. An extended deadline for banks to participate in the deal expired on that date (MEED 10:3:95).

The three-year deal is primarily being sought to re-establish Turkey's prestige in the international markets, and set a benchmark interest rate for Turkish risk internationally, according to banking sources. It carries an overall interest rate of 3.5 per cent over the London interbank offered rate (Libor), the banking sources add.

The deal is expected to be a club-like syndication with an average life of two years. According to the term sheet, it will be divided into a $350 million conventional credit, and a $150 million floating rate note (FRN). The FRN portion will be in three tranches, respectively maturing at the end of the first, second and third year.

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