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 Kingdom of Thailand is facing a second Moody's downgrade in less than five months following an announcement by the ratings agency on Tuesday that it has placed the country's A3 rating under review. The review also encompasses seven sovereign rated banks -- Bangkok Bank, Export-Import Bank of Thailand, Government Housing Bank, IFCT, Krung Thai Bank, Siam Commercial Bank and Thai Farmers Bank.
  • Morgan Stanley Dean Witter is to make a number of changes to its senior management to reflect the firm's growing ambitions in Asia. Mario Francescotti will become president and chief operating officer of Morgan Stanley Asia from January next year, where he will be responsible for the day-to-day management and administration of the firm's activities in the region.
  • THE Republic of Argentina will this morning (Friday) announce the results of its 30 year global bond exchange offer. The deal is not expected to match Venezuela's $4bn blockbuster in size, but will still be substantial at around $2bn to $3bn.
  • THE Republic of Estonia this week became the highest rated of all the former Soviet states when Moody's Investors Service and IBCA awarded it Baa1 and BBB long term foreign currency ratings respectively. The country's two investment grade ratings place it ahead of its Baltic peers, Latvia (rated BBB by S&P) and Lithuania (rated Ba2/BBB-/BB+ by Moody's/S&P/ IBCA). Merrill Lynch acted as Estonia's ratings adviser.
  • THE United Mexican States looked to European investors while its Latin peers looked to jumbo Brady exchanges this week by launching the first emerging market offering denominated in euros with a Eu400m seven year issue. Priced at 230bp the deal, led by Paribas and SBC Warburg Dillon Read, was snapped up by European investors thirsty for yield.
  • * Russian foreign trade bank Vneshtorgbank (VTB) will today (Friday) become the first Russian public sector bank to launch an international bond offering. VTB's transaction is expected at a minimum of $100m and a maximum of $200m over two years. Price talk on the floating rate issue via Chase Manhattan is 225bp-240bp over Libor, with the margin expected to be set towards the lower end of the range following positive feedback from investor presentations in Frankfurt and London this week.
  • THE REPUBLIC of Panama is the latest Latin sovereign to catch Brady buyback fever, announcing that it too will launch a 30 year global bond in exchange for its old Brady debt in the coming week. As foreshadowed by Euroweek last week, JP Morgan and BancBoston Securities have been mandated to underwrite the deal -- to be at least $500m in size.
  • MEXICAN oil company Pemex appeared to sacrifice some spread this week to issue $1bn worth of 10 and 30 year global bonds amid a deluge of Latin American sovereign paper resulting from the Brady debt exchanges. The offering, led by Goldman Sachs and Chase on the 30 year tranche and by Goldman Sachs and UBS Securities on the 10 year, was increased from an original $750m size, with $600m of 10 year bonds and $400m of 30 year paper.
  • PERU and Brazil are lining up to join the list of Latin sovereigns tapping the international markets in the months ahead. Both countries confirmed this week that they are considering capital raising plans for the fourth quarter. Eduardo Valdivia Velarde, Peru's secretary of external debt, told investors in New York this week that Peru is considering accessing the global debt markets for the first time, although in small size.
  • AS foreshadowed by Euroweek last week, the French government this week announced the resumption of the country's privatisation programme with the sale of minority stakes in France Télécom and Air France. The sale of 20% of France Télécom's equity capital -- to raise around Ffr40bn ($6bn) -- will be launched in around 10 days' time, just before the Italian government's $12bn sale of stock in Telecom Italia.
  • DAIWA AND Robert Fleming have been jointly mandated to lead manage a domestic and international offering of stock in Kredyt Bank, one of the few privately owned banks in Poland. Unlike many of the country's banks, which have essentially been spun-off from the National Bank of Poland, Kredyt Bank -- which was founded in 1991 -- started from scratch to build up a comparatively aggressive loan business for consumers and businesses.
  • BANQUE PARIBAS has won the mandate to act as lead manager for a Lit400bn convertible bond issue for the Italian diversified food producer, Parmalat. The group is no stranger to the equity capital markets, having executed a right issue to raise new capital last year that included an international offering led by UBS.