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  • Rating: Aa2 Amount: Eu100m
  • The development of central and eastern Europe's LBO market suffered a setback this week when the Czech government rejected the Eu1.8bn agreed bid for Cesky Telecom - set to be region's largest ever LBO. The cancellation has left JP Morgan and ING high and dry as the two banks were due to provide the financing to back the buy-out of the operator by a bidding consortium made up of Deutsche Bank Capital and Danish telco Teledanmark.
  • GH Water Supply Holdings and WaterCo Holdings, majority owned subsidiaries of Guangdong Investment, have mandated ICBC Asia and ICBC Shenzhen for a HK$12.8bn 10 year term loan and a HK$2bn 15 year term loan. The HK$12.8bn portion pays a margin of 133.9bp over Hibor and the HK$2bn tranche has a margin of 100bp for the first HK$800m and then pays 140bp for the remaining HK$1.2bn.
  • The People's Republic of China opened up its stock and bond markets to international investors this week. Under the Qualified Foreign Institutional Investors (QFII) scheme - which became effective on December 1 - qualified fund managers, insurance companies, commercial banks and securities companies can access the renminbi 'A' share and domestic Treasury bond market for the first time.
  • Colombia this week joined the recent flurry of Latin American issuers taking advantage of the better tone in the capital markets by issuing a 10.75% $500m 10 year Yankee bond. The deal, led by Deutsche Bank and Goldman Sachs, attracted over $800m of orders and was priced at 97.52 to yield 11.16% or 695bp over Treasuries.
  • René Carron has taken over from Marc Bué as chairman of Crédit Agricole SA. Carron is chairman of SAS La Boétie, Crédit Agricole's holding company, and of Fédération Nationale du Crédit Agricole (FNCA), the network of regional banks that controls Crédit Agricole. The bank said that the move was being made in an effort to bolster unity within the group.
  • Crédit Suisse First Boston has mandated Bank of America to arrange its new $1bn 364 day revolver. Danske Bank has joined as a senior co-arranger.
  • The market is still waiting for the award of the arranger mandate for the Eu150m five year facility for Privredna Banka Zagreb (PBZ). As foreshadowed by EuroWeek the two remaining bidding groups - Bank Austria and Sumitomo; and BayernLB and Citigroup/SSSB - have joined forces and are bidding together. The deal will have a club-style structure. Syndication of the Eu25m two year extension for RZB Croatia has been launched into syndication by mandated arrangers DZ Bank and Mizuho.
  • Mandated arrangers Bank Austria Creditanstalt, ING and Standard Bank have not yet closed syndication of the Ck2.66bn four year term loan for Bivideon. The deal is on track to close next week and banks will be signed in on December 9. The facility pays a margin of 150bp over Pribor. Proceeds will be used to refinance a Eu118m facility signed in December 2001, which was used to purchase 72% of Ceske Radiokommunikace.
  • Guarantor: DaimlerChrysler AG Rating: A3/BBB+
  • The new issue market was firing on all cylinders this week, despite the approach of year end, with around $14bn priced in the dollar market alone. There was feverish new issue related business in the swap market, particularly at 10 years, but once again spreads in this tenor demonstrated great resilience at around the 45bp mark.
  • Mandated arrangers Nordea and Citigroup/SSSB will close syndication of the Eu400m five year facility for Novo Nordisk next week. The deal has been well received and many of the borrower's relationship banks have already committed. The credit carries a margin of 30bp over Libor. Bankers think this will be the last deal from the Nordic region this year. For more details see EuroWeek 780.