A delayed, five-year samurai bond valued at Y50,000 million ($468 million) will be launched in Tokyo in April, according to a senior treasury official. The institution still hopes to price the deal at an annual coupon of around 5 per cent.

A working mandate for the bond was awarded to Daiwa Securities in early February. However, the deal was deferred until April, due to the formation of the coalition government in Turkey and to allow Japanese institutions to close their 1995 books, the source said.

The 5 per cent coupon was indicated in previous discussions between the Treasury and Daiwa, the official said. The treasury will seek terms comparable to its first 1996 commercial borrowing in January, a DM 500 million Eurobond carrying an all-in cost of 350 basis points above the London interbank offered rate (Libor).