Search results for

EuroWeek hears that Royal Bank of Scotland and Caja Madrid have quietly syndicated a Eu550m five year loan facility for Electricidade de Portugal. Bank of Tokyo-Mitsubishi (facility agent), ING, Sanpaolo IMI and Crédit Agricole Indosuez joined the club deal.

Powszechny Bank Kredytowy SA (PBK) and Bank Przemyslowo-Handlowy (BPH) approached their relationship banks this week to secure refinacings for between Eu70m and Eu100m. Activity by Polish banks in the syndicated loan market has been limited this year. However, appetite for Polish risk has been strong with corporates securing low margins in line with many other eastern European countries.

Supranational issuance continued apace this week, with 24 notes issued for $539.83m. Citigroup/SSSB was the most active bookrunner in this sector. The US firm placed three trades for the World Bank. The largest of these was for ¥1.3bn and goes out to March 2, 2032. Morgan Stanley was the lead dealer on the European Bank for Reconstruction and Development's (EBRD) $25m 10 year note. The range issue pays interest of 8% x N/365, where N equals the number of calendar days in the coupon period on which six month Libor falls within range.

Trades over 10 years dominated this week by volume with over $2.4bn closed from 140 trades. Sixteen financial repackaged deals were issued in the 10 year-plus range, totalling $912.84m. Banco BBVA's Atlanteo Capital was the most active repackaged entity, issuing 10 notes for $188.45m. The biggest SPV trade came through JP Morgan's Cosair (Jersey) entity. The ¥5bn note reaches out to March 22, 2021, and carries a coupon of 2.045%.

Single-A borrowers closed $350m more than double-A names, despite issuing just 36 trades. Single-A issuance was boosted by some large euro trades. Banque Fédérative du Crédit Mutuel issued a Eu250m note that matures in July, 2013. The note pays a coupon of 6.5%. The same borrower also closed a Eu150m issue that matures on June 13, 2004.

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.