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  • Rating: Aa3/A Amount: Ck500m
  • Barclays Bank plc will today (Friday) debut a new security that may fuel a surge of cheap tier one issuance from UK institutions and subsequent spread widening. The structure, which has been called Tier One Notes (Tons), is tax deductible and counts as core tier one capital, beyond the 15% limit on innovative tier one imposed by regulators.
  • Rating: Aa3/A/A+ Amount: Eu50m subordinated debt
  • Syndication of the Eu1.4bn loan for Interbrew has been closed oversubscribed and increased to Eu1.6bn. Mandated lead arrangers ABN Amro (joint bookrunner), Citigroup/SSSB (joint bookrunner) and Fortis offered 17.5bp for banks taking Eu120m as arrangers and 12.5bp for co-arranger commitments of Eu60m.
  • The management of media and entertainment company Bertelsmann AG meet investors in Paris and Milan today (Friday) on the third day of a roadshow to market the company's debut euro issue via Deutsche Bank, Dresdner Kleinwort Wasserstein and JP Morgan. Bertelsmann, which owns high profile businesses including RTL, Random House and BMG, is expected to offer Eu1bn of seven year bonds to be launched once the roadshow ends in Madrid on Wednesday.
  • The management of media and entertainment company Bertelsmann AG meet investors in Paris and Milan today (Friday) on the third day of a roadshow to market the company's debut euro issue via Deutsche Bank, Dresdner Kleinwort Wasserstein and JP Morgan. Bertelsmann, which owns high profile businesses including RTL, Random House and BMG, is expected to offer Eu1bn of seven year bonds to be launched once the roadshow ends in Madrid on Wednesday.
  • HBOS, the UK's largest residential mortgage lender, this week launched the biggest ever European mortgage securitisation (MBS) with a £3.5bn equivalent blowout deal that set new pricing benchmarks for European MBS. As bankers across Europe hurried to complete transactions before next week's ABS conference in Barcelona, joint bookrunners Barclays Capital, JP Morgan and Citigroup/SSSB catapulted the jumbo MBS into the market, the first issue from a new master trust.
  • KBC Bank and HSBC this week closed a Eu1.3bn managed synthetic collateralised debt obligation for KBC Financial Products. The deal is KBC Financial Products' first managed CDO, and provides investors with exposure to a managed portfolio of credit default swaps referenced to mostly US investment grade corporate bonds and loans.
  • Fin-Eco Leasing, a division of Bipop-Carire and Italy's fourth largest leasing group, last week (Friday) priced a Eu1.76bn securitisation of real estate, auto and equipment leases, the largest to date in the European market. Lead managed by Morgan Stanley and jointly lead managed by Mediocredito Centrale, the deal completes a quarter of heavy issuance in the sector that saw spreads widen in both the primary and secondary market.
  • Consumer bank Finconsumo Banca, a repeat issuer in the ABS market, will next month add its own twist to Italian securitisation with a wholly synthetic package of consumer loans. Rather than selling the assets to an SPV, the bank will gain regulatory capital relief through three credit default swaps with Crédit Agricole Indosuez (CAI) for the entirety of the Eu350m portfolio.
  • European ABS investors will be offered a new asset class later this year when AIG-MezzVest, a European mezzanine fund, launches its first securitisation. The Eu350m deal will parcel mezzanine loans made by the fund to support buy-outs and refinancings in a range of industries. However, the pool is less diverse than a conventional arbitrage collateralised debt obligation (CDO), so that investors will have to rely more heavily on the skills of the asset manager.