A six-year financing facility valued at $85 million in total was signed on 22 April by Koc Bank, a subsidiary of the leading corporate Koc Holding. The facility includes a $25 million loan from the International Finance Corporation (IFC).

The remaining $60 million will be provided from a US Commercial Paper Programme under a three-year guarantee of a group of banks led by Credit Suisse. The cost of the paper will be approximately the same as the London interbank offered rate (Libor). In return for the guarantee, the average, annual commission and the management fee to be paid to participant will be around 115 basis points.

Koc Bank will establish a special purpose company, Koc Funding Corporation, to issue the commercial paper. Setting up the company backed by Credit Suisse provides access to the US commercial paper market that would otherwise be denied by US legal barriers.

The mandate to Credit Suisse for the package was originally awarded in mid1995, but the deal was subsequently delayed by political uncertainty ahead of late December general elections.