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 SYNDICATED loan market got off to a uncertain start in January. While bankers half expected a slow kick-off to the year -- the market is a notoriously slow starter -- few could have expected such a sticky month. It was only until the last week in the month that the volume of transactions began to pick up and the market began to resemble its form of 1997.
  • United States The refinancing package for the Fibre Optic Link Around the Globe project (Flag) arranged by Barclays, is to be signed today (Friday).
  • THE REPUBLIC of Slovakia has invited banks to bid for the mandate to arrange a $300m five year syndicated loan. The loan will be used by the Slovak State Fund for Road Administration. However, the timing of the loan has puzzled some market players which have been concentrating on the $135m loan for Zeleznice Slovenskej Republiky (ZSR), the state owned railway company.
  • China The $50m term loan for Shanghai Fortune World Development Co Ltd has closed and was reduced to $41m.
  • * ASLK-CGER Ifico Guarantor: ASLK-CGER Bank
  • ITALY'S EXPORT credit agency SACE inaugurated a new asset class this week -- the sovereign CLO. SBC Warburg Dillon Read brought $650m of FRNs for Optimum Finance BV, a Dutch registered SPV, backed by Paris Club debt from 20 emerging market countries.
  • INDUSTRIAL BANK of Japan brought the first big ticket collateralised loan obligation of the year with Prime Funding Ltd, backed by loans from its US branches. Investors in the US and Europe, attracted by a robust structure and high quality assets, gobbled up $1.165bn of triple-A rated paper in a few hours.
  • * Morgan Stanley Dean Witter brought a $184.32m home equity deal for Block Financial, a subsidiary of H&R Block. Block Financial 1998-1, the company's third securitisation, offered five small fixed rate tranches and a $92.32m floater priced at 23bp over Libor with a three year average life. The deal was wrapped by MBIA.
  • DEUTSCHE Morgan Grenfell brought two more bonds from its Earls Three repackaging vehicle in a Euromarket private placement last Friday. Series 12 offered DM403m of 10 year paper callable from June 1998, with a coupon of 81bp over three month Libor and issue price of 99.353.
  • CITIBANK issued $665m of five year global paper from its Credit Card Master Trust, completing the fixed rate credit curve it has built up this month with deals at three and 10 years. Lehman Brothers brought the $625m senior tranche of Citibank Credit Card Master Trust Series 1998-3 at 43bp over Treasuries, with an issue and fixed re-offer price of 99.925 and a 5.8% coupon.
  • As its name suggests, risk-adjusted return on capital analysis (RAROC) is a method for factoring risk into the computation and evaluation of financial returns.