Search results for

DEBUT Euromarket issues for two of Russia's leading banks this week proved that the bid for Russian assets remains as strong as ever with both transactions emerging for larger than expected amounts. First to hit the screens was a $200m two year FRN for trade finance bank Vneshtorgbank (VTB).

* The Russian region of Nizhny Novgorod will today (Friday) become the first Russian region to tap the international bond markets with a debut offering under the lead of ING Barings. The Ba2/BB- rated region is to launch a $100m five year Euro/144A issue.

PANAMA will today (Friday) announce the results of its 30 year global bond exchange offer -- a deal expected to emerge for around $750m in size. The offering, led by JP Morgan and BancBoston, has a price talk of 225bp to 250bp and bank sources not involved with the deal were last night expecting the clearing spread on its 30 year bond to be set at 250bp.

THE Republic of Turkey enjoyed a blow-out reception for its $600m 10 year Euro/144A offering this week, confounding the predictions of some market participants that the B1/B rated sovereign would struggle to attract a strong US investor bid for its paper. At $600m the transaction was the country's largest ever dollar issue and at 10 years its longest dated international bond since it lost its investment grade status in 1994.

SIGNS of a possible dimming of investor interest in Latin new issues emerged last night (Thursday) when Bachoco, the Mexican chicken processor, priced its equity offering at the lowest end of its price talk. The deal, led by JP Morgan, was priced at $17 per share, compared with a $17 to $19 indicated range. A total of 7.5m ADSs (with each ADS representing one B share and one L Share) were offered in the US, internationally and domestically.

THE LATIN markets are bracing themselves for the chance of another billion dollar plus global bond from a Latin sovereign -- this time from the Republic of Brazil, strongly rumoured to be planning an announcement of either a 10 year or a 20 year bond issue at the IMF meeting. Bankers said yesterday that the republic's central bank called for bids on either 10 year or 20 year global bonds around a month ago, with the intention of making a splash at the IMF, either with a blowout deal executed just prior to the fund's meeting, or with the announcement of a mandate.

Market report Compiled by Gerard Perrignon, Hambros Bank Ltd, London. Tel: +44 171-865 1759

BAYERISCHE Hypo-und-Vereinsbank is set to raise nearly DM1.5bn ($875m) from international investors as part of a DM3bn capital increase. JP Morgan will lead the global offering portion of the exercise, which completes a restructuring begun by Bayerische Vereinsbank's merger with Bayerische Hypo-Bank.

AS foreshadowed in Euroweek, SBC Warburg has been mandated to lead manage the recapitalisation for the Paris-based property group, Société Fonciere Lyonnaise (SFL). The bank will run the books on the process which will include the sale of a range of instruments to international and local investors. The company will raise Ffr600m through the issue of new shares where the proceeds will be used directly by SFL. Existing shareholders will then sell stock to raise up to a further Ffr600m. Additionally, the lead manager will construct an equity linked debt financing which will take the form of a Ffr1.2bn offering of convertible bonds.

EUROPEAN issuers continued to tap the market for equity-linked debt finance, with a variety of synthetic and vanilla deals launched into a market which still offers a warm reception to quality names. SGL Carbon this week raised DM150m in six year exchangeable bonds through lead manager, Commerzbank. The German carbon-graphite electrode company is familiar to the equity capital markets, having gone public more than two years ago in a deal led by Kleinwort Benson and Dresdner Bank.

LEAD MANAGER Commerzbank this week braved earlier choppy market conditions to raise DM1.2bn for the diversified German steel producer, Thyssen. The firm sold 3m ordinary shares in an international offer which was priced early this week at DM400 against a close of DM408. In the week preceding the pricing considerable weakness in the US market had spread to continental Europe.

DUTCH MORTGAGE bank Westland/Utrecht Hypotheekbank has signed a $3bn Euro-MTN programme in a bid to promote its credit in the international markets and diversify its sources of funding. Arranged by ING Barings and Merrill Lynch, the programme will be used by the bank as a core funding vehicle alongside its guilder Euro-MTN programme launched last year, which has notched up outstandings of over Dfl 3bn.