More short-term Turkish syndications are entering the international markets reopened by a $500 million Turkish treasury deal last month after a year of absence. Interest rates are falling as expected - but at least one deal may have been caught out by being priced too high, according to Istanbul bankers.

Latest to enter the markets is a $100 million one-year syndication for the leading Turkish private sector institution, Garanti Bankasi. A mandate has been awarded for this deal to an arranging group of Sanwa Bank, Dresdner Bank, West LB and Dai-ichi Kangyo Bank. Pricing is 110 basis points over the London interbank offered rate (Libor), comprising a nominal interest rate of Libor plus 80 basis points, in addition to fees.

This pricing compares favourably with the all-in cost of around Libor plus 145 basis points for a $200 million, one-year deal currently being syndicated for another leading private sector institution, Turkiye Is Bankasi, say bankers (MEED 6:9:95). Lead arrangers for the latter pre- export financing are Sumitomo Bank, Sanwa Bank, National Westminster and Dresdner Bank.

In addition, a co-arranging group of around 15 institutions has also been established. The lead arrangers will underwrite about $50 million, and the co-arrangers the remainder, although the deal could be oversubscribed to around $230 million.

Another smaller deal actually signed in Amsterdam on 31 May is a one- year syndication led by ING for the private-sector Demirbank. Its nominal interest is around Libor plus 150 basis points, but with fees the all- in cost works out at around 200 basis points. The deal was oversubscribed by $10 million to $35 million.