Announcement of IFC and Morgan Guaranty to Arrange Innovative Credit Package for Turkish Bank December 21, 1987

International Finance Corporation FOR RELEASE: December 21, 1987 Press Release No. 88/23 6ONTA3T:Monique Amaudry 202/6 76-9331 IFC AND MORGAN GUARANTY ARRANGE INNOVATIVE CREDIT PACKAGE FOR TURKISH BANK The International Finance Corporation (IFC) and Morgan Guaranty Trust Company (MGT) have arranged jointly an export-financing package of US$60 million, consisting of an IFC credit facility and a Euro-Commercial Paper (ECP) program for Interbank (Uluslararasi Endustri ve Ticaret Bankasi A. S.), the privately-owned Turkish wholesale bank. The IFC credit facility consists of two portions: - Portion A: a five-year loan of $15 million for IFC's own account. - Portion B: a syndicated IFC credit facility of $45 million, all of which has been placed with participating commercial banks, and which will serve as a backstop facility for an ECP program of the same amount. The syndicated credit facility consists of two tranches: (i) maturity of 39 months from the facility signing date; and (ii) maturity of 27 months from the facility signing date. Syndication of Portion B of the credit facility, announced for $25 million, closed December 4. Commitments for $78 million were received from 28 commercial banks, including $29 million for the 39-month tranche. The size of Portion B was subsequently increased to $45 million, in line with Interbank's current funding requirements. Morgan Guaranty Ltd, a London-based Euromarket affiliate of MGT, is the sole dealer of the ECP program and is the issuing and paying agent. This transaction, approved by IFC's Board of Directors on December 17, 1987, represents the first commercial paper program for a - MORE - -2- Turkish commercial bank and the first such program for "ny Turkish institution without an underlying guarantee of the Notes. It is also the longest term syndicated international credit facility arranged for a Turkish commercial bank in recent years. The syndiaition includes at the lead manager level: Oesterreichische Lajnderbank, Bergen Bank, Irving Trust Company, Union Bank of Finland, Banca del Gottardo, Al Ahli Bank of Kuwait, Morgan Guaranty Trust Company, and Oesterreichische Volksbanken; and at the manager level: Abu Dhabi International Bank, Banque Internationale A Luxembourg, Al Saudi Banque, ALUBAF Arab International Bank, Bank of Nova Scotia, Bayerische Vereinsbank, Creditanstalt-Bankverein, Skopbank, Banca Commerciale Italiana, Bank fuer Gemeinwirtschaft, Banco di Napoli, Hamburgische Landesbank- Girozentrale, Midland Bank, Okobank, Pittsburgh National Bank, Provinsbanken, Trans-Arabian Investment Bank, Vereins- und Westbank, and Zentralsparkasse und Kommerzialbank. IFC is the World Bank affiliate providing equity financing and long-term loans without government guarantees to the private sector in developing countries. - END -