GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • The Republic of Argentina was forced to shelve a $500m domestic debt swap this week after one of the country's presidential candidates wrought havoc in the local and international bond markets by announcing he would seek papal support for an Argentine debt moratorium.
  • Initial market soundings for a euro-denominated private placement for Estonian power utility Eesti Energia have produced a positive response from institutional investors in Europe. According to bankers at the lead manager Credit Suisse First Boston, Austrian, German and a number of Estonian accounts have proved especially keen on the proposed floating rate offering - set to be Eesti Energia's first in the international bond markets.
  • US investors remained wary of Latin American this week, with even Pemex experiencing a slow response to a $1bn oil backed receivables issue it plans to launch next week. The offering, led by Morgan Stanley Dean Witter, will be broken into four tranches: one MBIA triple-A wrapped piece with an average life of 13 years, and three unwrapped triple-B rated portions with average lives of seven, 16 and 25 years.
  • The Slovak Republic this week brought a keenly anticipated second increase to its successful debut euro offering, adding Eu100m to the outstanding Eu400m five year issue. The 7.5% June 23, 2004 transaction was originally launched for Eu350m on June 9 at a spread of 420bp over Bunds, then upped by Eu50m at 415bp over on June 18.
  • A debut euro deal by Chilean telephone company CTC this week highlighted the intense bitterness between US and European houses vying for top euro corporate mandates by pricing at a level many Wall Street firms dubbed overly aggressive. Dresdner Kleinwort Benson and BBV SA emerged from an intense competitive bidding process to win the mandate to bring CTC to market with a five year Eu200m deal at between 120bp to 140bp over Treasuries.
  • The board of Israeli power company Israel Electric Corp (IEC) this week approved plans for a Eu300m-Eu500m issue via Warburg Dillon Read and Salomon Smith Barney. The deal will be launched in September. The debut euro issue for the state-owned borrower is likely to have a seven to 10 year tenor.
  • As foreshadowed in EW599 Hungarian mobile phone operator Pannon GSM is set to launch a Euromarket offering. An expected Eu125m five year Euro/144A issue via ING Barings is to be launched late next week or early the following week, following a series of investor presentations in Europe and the US which kicked off this week.
  • n Investment bankers have been pitching for the sale of stock in Morocco Telecom. The deal is likely to raise around $1bn and will be the most important equity deal yet to emerge from the Middle East. The government is likely to appoint one local or regional firm to fulfil the home markets alongside one or two international investment banks to distribute stock to international buyers. The timing of the deal is undecided although the last quarter of this year or early next year look the most likely targets.
  • Morgan Stanley Dean Witter will shortly complete the sale of stock in Sogecable, the Spanish programming company operating Spain's leading digital TV network.
  • Robert Fleming and Deutsche Bank this week executed a hugely successful £440m sale of stock in Kingston Communications and reopened the UK primary market after a period of relative inactivity. Few new issues have attracted investors' attention in the past few months and, excepting the offering from IT publishing group Future Network, there has been a scarcity of popular deals.
  • The Greek government completed the successful sale of 14% of its stake in national telecom operator OTE this week - its fourth divestment of the company after it sold its last stake late in 1998. OTE has been dogged by investor criticism as its shares have consistently underperformed the market, and there has been uncertainty about its management structure. However, the success of its latest offering has silenced its critics and raised $1.4bn for the government.
  • Banco Essi, Merrill Lynch and Warburg Dillon Read have completed the Portuguese government's Eu1.6bn sale of stock in Portugal Telecom. The deal, which was combined with a capital increase, is the fourth divestment of Portugal Telecom by the government, and the sale in the national operator has inspired keen interest from international and local investors.