A three-year Y 50,000 million ($576.3 million), bond issue for the treasury launched on 10 July by lead manager Yamaichi International had been oversubscribed by around 10-15 per cent on the following day, London bankers say. But the transaction would most probably be held close to its original amount for signing expected midway through the week ending 21 July, they added.

The issue had effectively already been placed mainly with Japanese investors, according to a Yamaichi official. The syndicate includes the following as co-lead managers: Goldmann Sachs, Morgan Stanley, Nomura, Bank of Tokyo, Chemical Bank, Daiwa Bank, Fuji Bank, Merrill Lynch, Nikko Securities, Sakura Bank and UBS.

The coupon of 4.5 per cent on the Euroyen issue, the equivalent of around 3.3 per cent above London interbank offered rate (Libor) inclusive of a 1 per cent, up-front fee, represents a big step forward for Turkish sovereign risk in the markets, according to the Yamaichi official. This compares with the all-in cost, including fees of around 3.45 per cent over Libor for the $500 million syndicated loan signed in April (MEED 28:4:95).