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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  • 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.
  • THE FIXED rate Eurodollar market came back to life this week with new issues from three of the Euromarket's top borrowers -- the World Bank, the EIB and the Kingdom of Sweden.
  • THE FIXED rate Eurodollar market came back to life this week with new issues from three of the Euromarket's top borrowers -- the World Bank, the EIB and the Kingdom of Sweden. The World Bank re-opened the sector, which had been closed for four weeks after global financial market volatility sent bond spreads spiralling, with a $300m five year deal led by SBC Warburg Dillon Read.
  • EUROPE'S HIGH yield corporate debt market will receive its first test since the correction in the bond markets when a two tranche financing for Colt Telecom is priced today (Friday). The £50m and DM145m deals will both have 10 year maturities and bankers said that lead manager Morgan Stanley would price the bonds within a 362.5bp to 387.5bp range over the relevant government benchmarks.
  • DRESDNER Kleinwort Benson launched a surprise DM1bn floater for the Hellenic Republic on Monday, repositioning the sovereign in the capital markets after the recent volatility. The deal carries a coupon of Libor plus 37.5bp and came at a discount margin of Libor plus 50bp -- 20bp to 25bp wider than where the republic was raising funds earlier this year.
  • SPAIN'S INSTITUTO Crédito Oficial (ICO) highlighted the flight to quality and liquidity by most fixed income investors with the launch of a highly successful $500m floating rate note this week. The five year deal, lead managed by HSBC Markets and Lehman Brothers, also marked the first time that ICO had issued with an explicit guarantee from Spain.
  • KITTY HAWK Inc has raised $381.8m through a combined equity offering and high yield bond to finance its acquisition of the Kalitta companies. Kitty Hawk is a US domestic air cargo carrier based in Texas, with revenues last year of $140m. In September it reached agreement with Conrad Kalitta to purchase five companies he owned, including American International Airways, a larger competitor of Kitty Hawk, with 1996 turnover of $420m.
  • Telia AB, Sweden's major telecommunications operator, has signed a $1bn Euro-MTN programme in an attempt to widen its international funding sources. The programme has been arranged by Deutsche Morgan Grenfell. The company has set up the programme in anticipation of increased funding needs, although it will use it only if funding levels are competitive with the Swedish domestic market.