Search results for

n KfW International Finance Inc Guarantor: Kreditanstalt für Wiederaufbau

Italian borrowers have been quick to seize the opportunities presented by the new euro bond market, launching a series of benchmark transactions this year in a bid to expand their investor base across Europe and beyond. The country's leading corporate and municipal borrowers have been among the most active debt issuers from Europe - headed, of course, by Olivetti, whose audacious takeover of Telecom Italia has heralded the new era of corporate restructuring and M&A activity that is set to transform Europe's industrial landscape and financial markets. Italian banks, increasingly focused on return on equity, are reluctant to keep lending at below-market rates and are encouraging their clients in the direction of the bond markets. And the burgeoning demand for credit products has ensured a warm welcome for established issuers and new borrowers alike. But borrowers have to be realistic in their pricing expectations if they are to transfer a strong domestic investor base into a strong pan-European investor base. As Eugénie Ballara reports, the days of cheap pricing - in the bank market and the bond market - are over. Italian corporate issuance in the international debt market has increased dramatically this year. Borrowers have moved quickly to take advantage of the replacement of their domestic lira market with the much broader and deeper euro bond market. Although many corporate issuers still have access to cheap loans, the rapidly growing level of M&A activity, a need to restructure debt and a desire to diversify their sources of funding is encouraging more and more companies to consider bond financings.

Italian regional and municipal authorities are at the forefront of Europe's developing local government bond market. Several issuers have already moved into the international bond and MTN markets, and many more are likely to follow. By Eugénie Ballara. Italy is in the vanguard of the developing municipal finance market in Europe. Four new regional and local authorities from Italy have already issued international bonds this year and several others are looking at the market. In terms of highlighting the potential of this burgeoning area of the Euromarkets, no issuer has done more than the Region of Sicily. Turned away by Italian lenders at the end of last year, the region staged an amazing comeback in April - raising Eu643m in the public bond markets as well as Eu235m through a schuldscheine issue and a private placement.

The European corporate bond market reached a milestone in June this year when Tecnost, subsidiary of telecoms giant Olivetti, issued a Eu9.45bn floating rate note. The bond was a key component of Olivetti's breathtaking Eu60.4bn bid for Italy's recently privatised telecommunications company Telecom Italia, and set new benchmarks in Europe's credit and leveraged finance markets.

France Barclays and Crédit Lyonnais have closed general syndication of the Eu400m reducing revolving credit for Framatome. Appetite was strong and an oversubscription was achieved. However, the borrower has decided against an increase and lenders will be scaled back

HEIDELBERGER Zement is the latest borrower to tap the hectic European lending market for a jumbo deal. It has decided to raise a multicurrency Eu2bn credit that will back its acquisition of Scancem, the Swedish cement producer. Heidelberger was tipped to use the syndicated loan market in May when it first announced its acquisition of Scancem.

Syndication of the £2bn credit for British Aerospace (BAe) will be launched in early August through arrangers Barclays, Citibank, Deutsche Bank, Dresdner Kleinwort Benson, HSBC and Lloyds Bank Capital Markets. The loan was first sighted in February, following BAe's decision to acquire Marconi Electronic Systems from GEC.

TORONTO-DOMINION (joint bookrunner), Bank of America (joint bookrunner), Paribas (joint bookrunner), CIBC, Citibank (joint bookrunner), Royal Bank of Scotland and MeesPierson have launched the Eu1bn credit for United Pan-European Communications to two levels of sub-underwriters. Senior co-arrangers are offered 32.5bp for underwriting Eu60m with a final allocation fee of 60bp and co-arrangers are offered 25bp for a underwriting commitment of Eu50m with a final allocation fee of 57.5bp.

SPECULATION mounted this week that Koninklijke Ahold (Royal Ahold) has approached the loan market for a jumbo facility - possibly around $5bn - so that it has financing in place to proceed with the acquisition of a large retailing company in the UK. Possible takeover targets suggested by loan market participants include Sainsbury's and Marks & Spencer.

CHASE Manhattan, Chase Securities, Deutsche Bank and Deutsche Bank Securities have closed general syndication of the $17bn senior debt package of revolving credits for DaimlerChrysler by the close of business today (Friday). Just under $23.5bn was raised in total from 49 banks, prompting the borrower to consider an increase. However, bankers say this is unlikely and that banks will have to be scaled back.

Denmark Bankers believe that JP Morgan and HSBC are the winners of the mandate to arrange a $800m acquisition financing for AP Moller-Maersk Line, the Danish shipping company, following its purchase of CSX Corp's Sea-Land shipping operations.