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 ESTONIAN Compensation Fund (ECF) tapped the international bond markets for the first time this week, launching a DM30m two year floating rate note via Salomon Smith Barney. The transaction was priced to yield 110bp over three month Deutschmark Libor on an issue price of par. ECF bucked the trend of Estonian issuers fighting shy of bond issuance since the outbreak of spread volatility in emerging market debt at the end of October.
  • BANKERS REPORTED a strong retail and institutional bid returning to the dollar market this week as investors selectively picked up bonds either on an asset swap or value basis. This considerable buying provided a much needed lightening of lead managers' heavy inventories, and created a much healthier new issue environment. Credit spreads in both the five and 10 year sectors have tightened by as much as 10bp, and swap spreads by 2bp.
  • THE SUCCESSFUL completion of a $358m GDR offering by India's Mahanagar Telephone Nigam Ltd (MTNL) this week defied the spillover from the Asian currency crisis and the country's troubled political scene, providing fresh impetus to its notoriously slow privatisation programme.
  • THE SUCCESSFUL completion of a $358m GDR offering by India's Mahanagar Telephone Nigam Ltd (MTNL) this week defied the spillover from the Asian currency crisis and the country's troubled political scene, providing fresh impetus to its notoriously slow privatisation programme. Many bankers had expected the deal to be withdrawn after a proposed $700m offering from the Gas Authority of India (Gail) failed to make it to the market in early November.
  • BOTSWANA'S first ever bond -- a Pula50m ($13.5m) seven year issue for Botswana Development Corporation -- received an enthusiastic reception from domestic investors this week, closing nearly 50% oversubscribed. Priced to yield 14% semi-annually, the transaction offered a 220bp pick-up over 12 month Bank of Botswana certificates yielding 11.80% on an equivalent basis.
  • SARDINIA this week became the first of what is expected to become a growing number of Italian regions and municipalities to launch a public Eurobond -- but most bankers involved in the deal said that the new asset class had made an inauspicious start. The $460m 10 year deal, on which Chase Manhattan was bookrunner and Crediop and Mediocredito Centrale were joint leads, was criticised by syndicate members as being too tight and for incorporating an amortising structure which limited the investor base.
  • THE LONG AWAITED shake up in Swiss banking may begin as early as today (Friday) with SBC Warburg Dillon Read and UBS poised to announce an agreement that could extend to a full blooded merger.