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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  • Argentina n Republic of Argentina
  • Although new issue momentum has yet to pick up properly on Wall Street after the Labor Day holiday, more names were added this week to an already impressive pipeline and market conditions are looking good for a busy second half of September. Although the frenzy for internet stocks may have cooled recently, there are no shortage of companies coming to the market from the sector. Deutsche Banc Alex Brown is at the helm for the revived IPO from Luminant Worldwide, which filed new terms this week.
  • n Banca Monte dei Paschi di Siena SpA (London) Rating: A1/A-
  • n Kingdom of Belgium Rating: Aa1/AA+
  • The market was abuzz this week with talk that Fiat will finally be coming to market with a jumbo facility. Bankers say Chase Manhattan and Credit Suisse First Boston are on the verge of being officially mandated as arrangers. Officials at both institutions were unavailable for comment. But market talk suggests an official mandate will emerge on Monday, and that the two banks will approach senior relationship banks soon after.
  • GOLDMAN SACHS and Merita are to launch the sale of the Finnish government's stake in national telecoms operator, Sonera. The company was first privatised last year during very turbulent markets and, although the deal was successful, the sale was tarnished by scandals involving the role of Sonera management in acquiring shares. Additionally the government was reportedly unhappy with the way the deal was priced.
  • The City of Gothenburg is poised to award the mandate early next week for a Eu300m seven year revolving credit. Bankers say a four bank shortlist has been compiled from a much larger number of initial bidders, which included SEB, Svenska Handelsbanken, Swedbank, Den Danske, Unibank and other banks both inside and outside Scandinavia. The mandate should be awarded to one or possibly two bidders.
  • Market commentary: Compiled by Jim Webber,
  • Sole arranger and underwriter Citibank has received a positive early response to the long anticipated Eu800m facility for Heineken España, which is using the credit to finance its acquisitions of the Cruzcampo and El Aguila beer brands from Diageo. According to the arranger, traditional relationship banks as well as Spanish lenders and sector specialists have shown strong interest in the deal.
  • THE REPUBLIC of Hungary has increased its syndicated loan from Eu300m to Eu400m. It will be signed today (Friday). The five year term loan carries a margin of 37.5bp, and is arranged by ABN Amro, Central European International Bank, Commerzbank and WestLB.
  • THE news that Mannesmann, the German diversified telecommunications group, is planning a jumbo Eu3bn convertible has sparked speculation of deals from other blue chip names that are still keen to raise equity linked debt finance despite the deteriorating market conditions. "Although the interest rate climate is slightly firmer than in the second quarter and stockmarket conditions are volatile, the cost of using this method of funding is still low," said one banker.
  • While swap spreads have traded at historic highs in recent weeks, the market has largely maintained these prices, rather than bidding them down as soon as a temporary panic passed. Nonetheless, borrowers are still finding it difficult to hit funding targets in both euros and dollars. For example, US financial services company Household Finance issued a Eu500m five year deal via ABN Amro and Deutsche, which was swapped back to floating dollars, a Household spokesman confirmed.