Six banks have been mandated by state trade financing institution Turk Eximbank to arrange a two-year, $150 million loan. This will be the first external borrowing by the institution since the failure of an attempted $100 million syndication in autumn 1994 (MEED 28:10:94).

The six banks are Citibank, Sakura Bank, Dai-ichi Kangyo Bank, Sabanci Bank and ABN Amro Bank. Syndication is expected to start by early December. Banking sources say the transaction will probably cost around 175 basis points above the London interbank offered rate (Libor).

Turk Eximbank’s credits to exporters increased by more than 150 per cent in the first nine months of the year to total TL 91.2 million million ($1,753 million) compared with January-September last year, said the institution’s general manager, Can Yesilada. This represents a 53 per cent increase in terms of dollars, he added.