Syndication was expected to start around 14 June for a $300 million, one-year loan Deing arranged for Is Bankasi. The preexport financing will close by the end of the month, according to Is Bankasi officials.
Co-arrangers are Fuji Bank, Dai-Ichi Kangyo Bank, Citibank, Royal Bank of Canada and Commerzbank. The fullyunderwritten syndicated loan will carry base margin of 52.5 basis points over the London interbank offered rate (Libor), and an all-in price of 75 basis points to each of the five co-arrangers, and 70 basis points to the market. The co-arrangers were expected to reduce their initial commitments of $60 million each to $20 million through transfers to a subsidiary underwriting group.
Despite the political crisis, conimnercial banks have continued to launch short to medium-term borrowings at lower rates of interest. Foreign lenders have been reassured by the ability of Turkish institutions to service debts during and after economic crisis in 1994 bankers say.