Daiwa Securities has been awarded the mandate to arrange the treasury’s second commercial borrowing of the year, a Y50,000 million ($357 million) samurai bond in the Tokyo market. The transaction will be launched at the end of February, bankers say.

No details have been disclosed on pricing, but a senior treasury official said recently that Turkey would seek five-year financing valued at the equivalent of up to $750 million at interest of 320 basis points over the London interbank offered rate (Libor) from the Japanese markets in February.

The mandate awarded to Daiwa is flexible, allowing the institution to take on other lead partners, bankers say.

The samurai bond is the treasury’s second commercial borrowing in 1996 after a recent DM 500 million ($338 million) Eurobond.

The treasury says its fresh commercial borrowing requirement in 1996 will be around $2,500 million. Total external debt servicing for 1996 is around $10,000 million10,500 million, roughly the same as in the previous year.