Search results for

THE REPUBLIC of Argentina made the most of tighter spreads across the board for Latin American issuers this week when it added $500m to its $1bn 10 year global bond. The reopening, led by Chase and Goldman Sachs, was priced at 623bp over Treasuries to yield 11.344%. That compared favourably with the 690bp spread of the original issue, which yielded 12.165% when launched on March 29.

Australia Kerry Packer owned Publishing & Broadcasting has completed a A$1bn, one year self-arranged facility.

SG AND Goldman Sachs this week executed the largest ever convertible bond issue, with a Eu3bn bond for French water and media group Vivendi to help fund its purchase of North American water company US Filter. Vivendi will complete its financing requirements through a Eu3.2bn sale of common stock later this quarter, which is likely to be run by the same team of global co-ordinators.

VOLKSWAGEN and Dresdner Bank have become the latest German blue chips to announce plans for large capital increases, adding to an already full pipeline of new issues in Germany over the next few months. Dresdner joins its three largest domestic banking rivals -- Deutsche Bank, Commerzbank and HypoVereinsbank -- in looking to raise new equity capital that will put around Eu8bn in new equity on the Frankfurt stockmarket.

THE BOOK of demand for Software AG, the German systems software company, is coming together well after one week of marketing. The deal will be completed at the end of next week, with early indications pointing to a successful offering -- particularly among international institutional investors. The IPO is being run by HypoVereinsbank and Commerzbank in the local market, and Lehman Brothers in the international tranche. This week bankers reported that demand from the local market, while building steadily, has not been as frenetic as in some recent hi-tech deals from the Neuer Markt. The lead managers indicated a price range of between Eu31 to Eu37 and grey market trading has been observed at between Eu33 and Eu36. Investors in Switzerland and the US appear to be particularly keen, with large and firm orders coming from both areas.

THE SALE of stock in Banca Monte dei Paschi di Siena (MPS) has been launched, with CSFB and the Italian bank itself acting as global co-ordinators. The deal, which could raise Lit1.13bn in new equity for the bank, is Italy's first privatisation sale this year. Its success will be closely followed by the savings foundations which are planning to sell stock in UniCredito.

* Lead manager HypoVereinsbank and co-managers Commerzbank and Deutsche Bank have completed the sale of 800,000 primary shares in Odeon Film, the German TV and film group. The deal, which resulted in the stock obtaining a Neuer Markt listing, was well oversubscribed and this allowed the lead firm to price the stock at the top end of the range -- Eu32. The deal raised Eu28.16m and marks one of the few listings of a film group on the Neuer Markt.

ACTIVITY in the Portuguese primary equity market will soon resume with the long awaited $1bn convertible bond from Portugal Telecom. Although the lead managers of the deal have not been revealed, the global co-ordinators of Portugal Telecom's privatisation sales -- Banco Essi, Merrill Lynch and Warburg Dillon Read -- are strong contenders.

4798

THE PRICING of a Eu500m dual tranche transaction for the Region of Sicily will be the focus of attention in the Italian market today (Friday) and in the broader European municipal finance market. Lead managed by Merrill Lynch, the transaction marks a significant achievement for a regional borrower whose funding efforts have been plagued by difficulties.

THE REHABILITATION of Asian credits in the international capital markets gathered pace this week as a host of issuers lined up to seize the opportunities offered by sharply tightening spreads.

There are no stories in this section this week