TURKEY: Loans for medium-size borrowers progress

25 August 1995

Strong market appetite is supporting progress for several one-year syndicated loans sought by medium-size private Turkish banks, Istanbul bankers say. A $75 million facility mandated by the private Kocbank to Chase Investment Bank and Dai-Ichi Kangyo Bank, to start syndication probably in late August, is the most recent.

The loan carries a fine margin of 75 basis points over the London interbank offered rate (Libor), with an all-in cost close to 100 basis points, sources say. It is one of several planned by medium-size private Turkish borrowers re-entering the international markets after Turkey's economic crisis last year.

Syndication of a $45 million loan towards pre-export financing for another private institution, Eskisehir Bankasi, closed on 11 August for signing on 22 August. The transaction was oversubscribed from its original launching at $25 million towards the end of July.

Lead arranger for the transaction, among a total of about 13 participants, is Bank of New York, with co-arrangers The Arabian Investment Company and Standard Chartered Bank. The deal carries a margin of 145 basis points over Libor and fees of 40 basis points.

General syndication started in the week ending 18 August for a $50 million loan for another private medium-size Turkish institution, Demirbank, said the sources. Joint lead arrangers are Bank of New York, Sanwa Bank, and The Arabian Investment Company. This transaction is priced at a margin of 90 basis points over Libor plus fees of about 60-75 basis points, and will probably be oversubscribed to $75 million, bankers say.

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