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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  • KOREA'S MAMMOTH fundraising programme looks likely to take shape in New York next week during what looks set to be a series of extremely heated debates between a government with a reputation for pricing inflexibility and a 90-strong group of creditor banks hoping to extract some value from the republic's financial distress. Bankers say that of the two plans on the table, the JP Morgan-led commercial bank debt exchange now looks to be favoured over a Goldman Sachs/Salomon Smith Barney bond plan.
  • DBS ASIA Capital's $40m IPO for Dalian Refrigeration Co is still hanging on as the B-Share market dropped to historical lows this week and the company finished its roadshow in Japan today (Friday). Analysts around the region added another challenge to the deal, saying that Dalian's price range is out of line with the market.
  • A 250m SECONDARY share offering by New York-listed Huaneng Power International (HPI) became the chief casualty of renewed volatility across Hong Kong markets this week, with the roughly $150m deal postponed by lead manager JP Morgan midway through roadshows. The failure of the H-share issue disappointed market participants, many of whom view the company as one of the strongest Chinese counters.
  • * Two further deals were launched in Hong Kong's active domestic currency market this week. Merrill Lynch came first with a HK$300m fixed rate offering for the European Bank for Reconstruction & Development. With a one year maturity, the par priced issue carried a coupon of 12.625%, with fees totalling 10bp, split 2.5bp managers and underwriters 7.5bp selling.
  • * Asia lost its largest regional investment bank outside Japan this week when Peregrine Investment Holdings collapsed after Switzerland's Zurich group pulled out of a proposed $200m capital injection. After seeking help from the Hong Kong government and trying to formalise a last ditch $60m bridging loan from First Chicago Bank late last week, the group filed for liquidation on Monday.
  • * Hungary may be the first central and eastern European sovereign to tap the Euromarkets this year, with the Baa3/BBB- rated issuer understood to have invited bids for a proposed DM500m five year floating rate note. Price talk is of a coupon level set at 50bp over DM Libor. This would represent a considerable cost saving over the last time the country tapped the Euro-DM market in April 1996 with a DM500m six year issue through its central bank, the National Bank of Hungary.
  • THE FIRST test of US investor demand for Latin corporate issues will take place in the week ahead when two Mexican corporates tap the 144a market. Newly privatised Mexican satellite company Satmex has mandated DLJ and Lehman to lead a $295m seven year debut in the 144a market, while CSFB is sole lead on a $175m seven non-call four year 144a debut by Mexico's second largest sugar producer, Grupo Azucarero Mexico (GAM). Both are on roadshow and plan to price late in the week ahead.
  • SUPRANATIONAL Corporation Andina de Fomento (CAF) opened the German market for Latin American new issue business this week with a DM200m five year offering. The deal, led by Dresdner, came at 84bp over Bunds, far wider than the original 40bp level at which CAF had hoped to complete its DM debut last year.
  • THE REPUBLIC of Colombia is today (Friday) expected to kick off the roadshow for its long awaited debut in the sterling market. Lead managers CSFB and Barclays plan to take the issuer to Zurich, London and Edinburgh for investor presentations and if markets permit, price the deal in the next two weeks.
  • BANKERS THIS week began making initial presentations for what could be the largest share issue out of Austria, the privatisation of Post & Telekom Austria (PTA). Adviser and global co-ordinator mandates are up for grabs and are attracting considerable interest from international and Austrian investment banks.
  • AS PREDICTED in Euroweek last week, lead manager HSBC has launched the sale of £400m in exchangeable bonds for National Grid Company plc. The deal was mooted at the end of last year when the company sought approval from majority shareholders. It is the first time such a structure has been launched in the UK. The 10 year bonds offered investors a semi-annual coupon of
  • * Credit Suisse First Boston is poised to launch the sale of stock in Bank Pekao SA of Poland. The deal will raise around $150m and is one of the most eagerly awaited transactions from eastern Europe. * The French Stock Exchange is considering selling shares to outside investors and listing the shares in the next two years, although discussions are still in the early stages.