Citicorp is leading syndication of a $6 billion loan to refinance a $4 billion Citicorp-led credit to Canada.

Canada will use the additional $2 billion to prop up its dollar.

Citicorp is looking for commitments of $400 million for senior managing agents and of $250 million for managing agents on the five-year revolving credit.

The loan will be syndicated in New York, London, and Tokyo.

Canada, which has a AA+ rating from Standard & Poor's Rating Corp., secured the loan at the London interbank offered rate plus 4 basis points, with a 2.5 basis-point facility fee and a 1.5 basis- point commitment fee.

The fees reflect the considerable tightening in loan pricing.

Last year's loan to Canada, which had the same rating, was priced at Libor plus 7.5 basis points, with a 2.5 basis-point facility fee and a 2.5 basis-points commitment fee, according to the Loan Pricing Corp.

Countries have refinanced long-term debt or propped up faltering currencies by securing cheap loans from a hungry bank market.

Among these loans is a proposed $3 billion facility for Mexico being arranged by Citicorp and J.P. Morgan & Co., which has run into some difficulty in syndication. Banks have voiced concern about the unsecured nature of the loan and the Mexican economy.

The Mexican government has reportedly looked to Morgan and Citicorp for a medium-term deal.

The two money centers had much greater success syndicating their loan to Sweden, which because of oversubscription was increased from $5 billion to $6 billion.

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