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  • Coca-Cola Amatil has updated its $2 billion debt instrument programme and has dropped ABN Amro as a dealer.
  • Utilities deliver and dispose of the vital needs and functions of society. As such, they are prized by investors for their stable, non-cyclical attributes. But now, more of Europe’s energy utilities are slipping towards lower, riskier ratings. Market liberalisation is driving the change, and the leaders have responded with aggressive cross-border, multi-utility consolidation strategies. Quentin Carruthers reports on how the capital markets are funding this increasingly competitive industry
  • Dollar swap spreads continued to narrow sharply this week. At close yesterday (Thursday), the 10 year market was at 67bp over Treasuries while the five year market was at 76bp over. At the long end of the curve, swaps to Treasuries trade at 49bp. These prices are between 4bp and 6bp tighter than a week ago. Swap spreads mushroomed after the events of September 11, but have subsequently tightened to lower levels than before the terrorist attacks.
  • Dow Chemical Company signed a euro2 billion ($2.95 billion) Euro-MTN programme on Wednesday September 26. Deutsche Bank arranged the programme and the dealer panel comprises ABN Amro, Credit Suisse First Boston, JPMorgan, BNP Paribas, Schroder Salomon Smith Barney, UBS Warburg and the arranger. The issuer has mandated Deutsche Bank and JPMorgan as lead managers of the inaugural public deal. Moody's rates Dow Chemical Company A1 and Standard & Poor's rates it slightly lower at A.
  • Triple-A rated utility Electricité de France (EdF) will be in Paris today (Friday) to roadshow its long dated euro benchmark, which is set to attract strong support from a European investor base keen to buy utility paper. The sector is being seen as a defensive play by investors looking for safety in the wake of the September 11 terrorist attacks in the US and the likelihood of a sharper slowdown in the global economy.
  • Bulgaria Signing of the Eu10m guarantee facility for the First Investment Bank of Bulgaria has been delayed. The loan was due to be signed this week.
  • Sightseers in Rome this week may have noticed an influx of a slightly better dressed crowd than the usual backpacking fraternity, given the bank meetings being held there yesterday (Thursday) and today (Friday) to mark the launch to general syndication of the loans for Wind and Endesa Italia. The key similarities between the two credits would appear to end with the choice of venue for the meetings, the nationality of the borrowers, and omnipresent energy company Enel.
  • Although liberalisation in central and eastern Europe is driven by the need to join the EU as soon as possible, utility sector reform in the region can be slow. But, while governments remain reluctant to sell off core assets, restructuring and IPOs have opened up acquisition targets to foreign predators. And those utilities that can shake off state support may also help to shake up the sector. Laurence Knight reports
  • Argentina * Province of Buenos Aires
  • International Endesa has increased the debt ceiling off its debt instrument programme from euro7 billion ($6.42 billion) to euro9 billion. It has also added five banks to the appointed dealer panel. They are BBVA, BSCH, Caja Madrid, Banco Espanol de Credito and Invercaixa Valores.
  • Euro trading continued to be strong as last week drew to a close. Gallaher Group's euro750 million ($684.84 million) trade overshadowed all others in terms of volume. The trade comes just over a week after the issuer raised the ceiling off its MTN programme to £