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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  • * Morgan Stanley Dean Witter will likely launch its Eu400m securitisation of non-performing mortgages for Banco di Sicilia late next week. Island Finance (ICR 4) SpA will be the first deal backed by Italian NPLs to achieve a triple-A rating, and is believed to have attracted good interest from investors.
  • The factors that contribute to a bond futures valuation versus the bond curve have different impacts on the future pricing versus the swap curve.
  • * Korea Power Corporation (Kepco) is expected to award mandates as soon as next week for a proposed $500m bond offering, making it the first of Korea's mainstream borrowers to tap the market this year. The utility has previously expressed a preference for five year dollar funds. Because of its impending restructuring, the company is prevented from incorporating any government ownership clauses in bond documentation and has not yet made the necessary amendments to its existing programmes.
  • Bank of Western Australia launched its first international securitisation this week with a $640m mortgage backed transaction lead managed by Warburg Dillon Read. The deal was the first Australian MBS in the Euromarket since last October, and investors snapped it up. The shortage of supply enabled WDR to reverse some of the spread widening that affected the sector last year.
  • UNION BANK of Hong Kong has become the first of the territory's banks to try and solve its Chinese non-performing loans problem through the creation of a wholly owned asset management company (AMC). With Merrill Lynch acting as financial adviser, the medium sized bank said yesterday (Thursday) that its entire Chinese bad loan portfolio would be transferred to a British Virgin Islands incorporated AMC at net book value and funded through the issue of HK$1.884bn in senior and junior notes priced at par.
  • Australia Nasdaq listed internet directory company LookSmart Ltd is preparing to list on the Australian Stock Exchange on February 23.
  • THE irrepressible rise of technology stocks on the Hong Kong Stock Exchange moved up another gear this week, with Pacific Century CyberWorks leading with a $1bn blow-out placement. Crédit Lyonnais Securities Asia (CLSA) also raised $93m in a top-up placement as a bought deal for internet portal developer e-Kong Group Ltd. ABN Amro secured $40m for Sino-i.com. Exciting IPOs are also close to the market, including Tom.com, SUNevision and Sunday Communications.
  • Banks attended a meeting in Paris yesterday (Thursday) for the £3.95bn acquisition financing for the French building materials firm Lafarge, backing its hostile bid for Blue Circle of the UK. Terms on offer appeared more generous than many of the some 35 banks present expected. But this was in large part due to the hostility of the bid. However, it has given them a chance to join a high paying deal and make some headway towards ambitious 2000 fee targets.
  • Argentina The IFC has brought in Barclays Bank (Miami) as an arranger on an $80m B-loan for Banco Hipotecario SA. The three year loan will be launched in Frankfurt, London and New York on consecutive days, starting February 22.
  • * World Bank Rating: Aaa/AAA
  • Bahrain The $68m two year term loan for Aluminium Bahrain, arranged by Sumitomo Bank, is set to raise an oversubscription, with the borrower considering how much extra funding to accept.
  • THE NEUER MARKT showed increased signs of maturity this week with a placement for market giant MobilCom, an increase in Carrier 1's IPO to make it the largest ever on the NM, a slew of IPOs and the imminent launch of Lycos Europe's eagerly awaited Eu400m offering. On Tuesday Deutsche Bank placed Eu393m in shares of MobilCom on behalf of Unisource, which recently sold its D-Plus mobile telephone business to the mobile telephony operator.