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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  • BOOKRUNNER UBS is to press ahead with the international sale of stock in Unibanka of Latvia, braving the unsettled environment for emerging market equities. Unibanka is partially owned by the government which controls around 32% of its equity capital. Of the remainder, 21% is in the form of a free float on the Riga stock exchange, with 20% held by the EBRD, 8% controlled by Swedfund and the remaining 19% owned by various small investors.
  • THE NEWLY issued shares of Hungarian telecoms operator Matav have performed well in their first week of trading, further underlining the success of eastern Europe's largest equity offering. The privatisation was executed last week at a time of intense weakness on the Bundapest stock market, which fell 20% during the week and by some 12% on the day of pricing.
  • * Lead manager Morgan Stanley has completed a successful offering of shares in Ittierre, the Italian producer of designer labelled clothing under licence. Despite investors' coolness towards the luxury goods sector, the issue was well oversubscribed.
  • MORGAN Stanley Dean Witter this week launched an offering of DM252.85m exchangeable bonds for Beteiligungs-verwaltungsgesellschaft Nordrhein-Westfalen to dispose of the regional authority's holding of shares in recently privatised airline Lufthansa. The deal sold quickly, attracting keen demand from a wide variety of investors. The five year bonds offer buyers an annual coupon of 2-1/8% and a conversion premium of 24%.
  • THE FRENCH government is planning to organise a beauty parade to select lead managers for the upcoming divestiture of its remaining 36% stake in car manufacturer Renault. The deal will raise around Ffr12bn and should be structured in a similar way to the government's last sale of Renault stock three years ago, for which BNP and Crédit Agricole were bookrunners and ABN AMRO and Lazard Frères were joint lead managers.
  • * International Home Foods raised $272m through lead manager Donaldson Lufkin Jenrette this week. The firm priced the shares at $20, at the top of the pricing range of $18-$20. Some 13.6m shares were offered, of which 3m were sold by existing shareholders. Some 20% of the stock was targeted at international investors. The deal was significantly oversubscribed, with particularly strong demand reported from the US.
  • CITIBANK International and joint arranger African Export-Import Bank have launched syndication of a $30m three year amortising term loan at 200bp for Libor for the Central Bank of the Seychelles. The loan, the first international fund raising for the country, is to fund infrastructure projects and the expansion of Indian Ocean Tuna (IOT), a tuna processor 40% owned by the government of the Seychelles and 60% by HJ Heinz.
  • FOLLOWING A week of relative spread stability, an improving secondary market, and several successful primary transactions, bankers are adopting a much less pessimistic attitude towards the short term future of the Eurobond market. The success of deals from the World Bank and Sweden in fixed rate dollars has improved sentiment considerably. "The market is convalescing nicely," said one banker, "and deals like World Bank and Sweden have helped that recovery a lot."
  • A SEMBLANCE of stability returned to the Yankee primary market this week with two issuers raising a total of $800m -- the most volume the sector has seen in weeks. Finnish paper company UPM-Kymmene Corp was able to double its planned debut to $600m, issuing $225m of 10 year notes at 110bp over Treasuries as well as $375m of 30 year bonds at 140bp via lead manager Merrill Lynch. JP Morgan also led a $200m seven year issue for UK conglomerate Rank Group Finance at 95bp over.