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  • Mandated arrangers Africa Merchant Bank, BNP Paribas, Natexis Banques Populaires and SG at last launched the $1.15bn 5-1/2 year pre-export financing for Sociedade Nacional de Combustiveis (Sonangol) into senior syndication on Wednesday. The deal is the largest the borrower has attempted and carries the longest tenor it has ever requested.
  • The management of Six Continents urged its shareholders to reject a £5.6bn hostile offer from Hugh Osmond's Capital Management and Investment (CIM). In response Osmond yesterday (Thursday) sent a strongly worded letter to Six Continents shareholders headed, "Six Continents plc is railroading its shareholders, keep your options open: vote against the demerger".
  • The South African government completed the largest IPO of the year on Tuesday when it sold 25% of telecoms operator Telkom.
  • The South African government completed the largest IPO of the year on Tuesday when it sold 25% of telecoms operator Telkom.
  • Amount: £350m Class A1 notes: $262m
  • BBVA, La Caixa and Citigroup/SSSB have launched the sub-underwriting phase of the Eu750m dual tranche loan for Empresa Nacional del Gas SA (Enagas). Banks have been invited to underwrite Eu75m for an underwriting fee of 7.5bp to be brought down to an indicative final hold position of Eu45m for a participation fee of 22.5bp.
  • The ECB cut interest rates by 25bp yesterday (Thursday). There are increasing calls in the US for the Federal Reserve to also lower the Fed Funds rate yet again. Both European and US economies remain feeble and a war against Iraq is on the horizon. For this, and other reasons, swap spreads remain subjected to considerable downward pressure this week. At least in the dollar market, these pressures were compounded this week by a lively new issue market which saw more swap-driven business than in recent weeks.
  • The mandate to arrange the new five year facility of up to Eu1bn for Scania was awarded to ABN Amro, Deutsche Bank and Nordea yesterday (Thursday). Mandated arrangers Danske Bank and SEB Merchant Banking will sign banks into the $200m five year revolver for BT Industries on Monday. The deal has been oversubscribed but the increase will not be accepted.
  • Rating: Aaa/AAA Amount: $1bn designated bonds
  • Rating: Aaa/AAA Amount: $1bn
  • Cash strapped French utility Suez completed a firesale of shareholdings last Friday when it sold stakes in Axa, TotalFinaElf and Vinci. The utility raised around Eu400m through the three block trades, which were launched after the market closed on Thursday, and completed before the market opened on Friday morning.