Search results for

DIAGEO, the international food and drinks company formed from the merger between Grand Metropolitan and Guinness plc, has established an $8bn US commercial paper programme through its wholly owned subsidiary and borrowing vehicle Diageo Capital. Issuance under the programme should start next week. The size of the new facility is larger than the combined size of the existing programmes for Grand Metropolitan and Guinness so it can accommodate the planned share capital repayment of 70p per share.

JP MORGAN this week disclosed that it has won the top slot to lead manage the forthcoming $1bn sale of stock in Gillette, the personal care products company. This is a major coup for the US firm, which has been patiently building a niche for itself in the domestic and global equity capital markets, as it had to beat off competition from most of Wall Street for the deal.

MORGAN STANLEY Dean Witter this week completed the first bought deal of the year -- and also one of the largest such transactions in recent months. The £260m deal was for shares in Great Universal Stores, owner of Burberry and retail mail order businesses and a financial services group. The company is publicly traded in London and widely owned by institutional investors.

ANZ INVESTMENT Bank has won the mandate to arrange an innovative five year limited recourse financing for Village Cinemas of Argentina. The proceeds of the loan, which has initially been set at $100m but may be increased, will finance a network of 160 screens in Argentina over the next two years. The novelty of the deal is that it marks the first time that limited recourse debt has been used to finance such an ambitious project. This type of venture has not even been tried in the developed markets, let alone the emerging markets.

THE REPUBLIC of Argentina abandoned a tentative plan for a $500m to $1bn 10 year bond this week, confirming fears of a dismal first quarter for the Latin new issue market.

THE REPUBLIC of Argentina abandoned a tentative plan for a $500m to $1bn 10 year bond this week, confirming fears of a dismal first quarter for the Latin new issue market. The borrower, last year's most successful from the emerging markets, was not willing to pay the prices that would likely have been demanded of it.

China Arranger Standard Chartered Bank is inviting banks to join a $20m financing for Guangdong International Trust & Investment Corp, Shenzhen.

Australia Arranger Toronto-Dominion Australia has launched the A$85m five year revolver for Signature Security Group and Securitas Electronic Protection Services Pty Ltd.

* Bayerische Landesbank Rating: Aaa/AAA

BANKERS THIS week began making initial presentations for what could be the largest share issue out of Austria, the privatisation of Post & Telekom Austria (PTA). Adviser and global co-ordinator mandates are up for grabs and are attracting considerable interest from international and Austrian investment banks.

THE LIRA market provided some light on an otherwise gloomy horizon for Latin issuers this week when Mexican commercial bank Bancomer successfully placed Lit250bn worth of five year bonds. The 7.125% deal, led by Chase, was increased from Lit200bn and came at 99.625 to yield 224bp over BTPs -- an attractive swap rate of 254bp over Treasuries for Bancomer at a time when UMS dollar bonds maturing 2001 were trading at 279bp and BNCE 04s at 332bp.