Search results for

THE spillover from the Asian currency crisis has brought to a temporary standstill Indian borrowers' plans to diversify into the 144A market, where spreads have widened by up to 30bp over the past few weeks. Engineering company Larsen & Toubro had been expected to lead the autumn pipeline to market with a $150m 10 year deal via Credit Suisse First Boston, its rating adviser. However treasury managers at the company said that the company is evaluating the situation.

One of China's leading Hi-Tech Development Zones will establish a new emerging markets financing template later this month with the sale of $105m of fixed rate 144A certificates, arranged by Cargill Investors Service and O'Brien Partners. The aim of the transaction is to finance infrastructure development in the already thriving Suzhou New District by circumventing the Chinese prohibition on municipalities issuing general obligation debt.

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.

Securitisation officials at investment banks in Asia are focusing on Korea as currency volatility has made swaps from south-east Asian currencies impractical. The first three Korean securitisations are likely to be for Saehan Merchant Bank and Hansol Merchant Bank, both through ING Barings, and for LG Merchant Bank via Chase.

BANK Universal, a subsidiary of Indonesian conglomerate Astra, confounded market expectations this week by ploughing ahead with its 250m share flotation in the face of a volatile currency market which continues to undermine the country's banking sector and cast a cloud over the Jakarta stockmarket. Priced at Rph675 per share, against a pre-marketed level of between Rph750 and Rph950, the SBC Warburg-led deal came at a discount to the Indonesian banking sector, achieving a p/e ratio of 8.2 times 1998 earnings.

* South Korea's Kyonggi Province has launched a ¥11bn Samurai via Daiwa. With a five year maturity, the AA+ JBRI-rated deal was priced at par with a semi-annual coupon of 2.1%. Fees totalled 40bp, split 5bp managers, 5bp underwriters and 30bp selling, with underwriters comprising Kokusai, LTCB, New Japan, Nomura, Yamaichi, Fuji, Kankaku, Merrill Lynch, Sakura, Sanwa, Tokyo-Mitsubishi and Universal.

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.