GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • France Télécom received a vote of confidence from continental European and UK investors this week when its long awaited Eu5bn equivalent multi-tranche euro and sterling bond was snapped up by investors eager to buy Europe’s highest rated telecoms company after roadshows that boosted confidence in the company.
  • The plight of the single European currency once again proved the main focus for the euro swap market and kept inter-bank business to a minimum. When various German think-tanks on Wednesday recommended that the ECB leave rates unchanged, despite the level of $0.829, Euribor futures remained reasonably well bid and the swap curve steepened by a basis point or two. The five year versus 30 year curve steepened 2bp to 52bp.
  • * Shares in financial advisory group AWD got off to a good start on Friday last week, rising by as much as 30% on their first day. The result is a relief for joint bookrunners Deutsche Bank and Morgan Stanley Dean Witter, who managed to get the company's Eu535m IPO done despite having to amend the prospectus twice and then price at the bottom of the bookbuilding range. "Particularly given the bad press we had during the bookbuilding period, we are very pleased," said one banker involved in the deal.
  • The low penetration of portable computers in Europe could prove a decisive factor for the Neuer Markt IPO of Austrian electronic notebook manufacturer Gericom, expected to raise about Eu100m. The research meeting for the deal took place this week, and analysts expect strong growth from the company. According to the company's research, while 80% of European households possess a computer, only 16% have a portable one.
  • US firm The Healthcare Company (HCA) issued £150m of 10 year high yield bonds on Wednesday - the day after Levi Strauss pulled a $350m issue in the US because of continuing adverse conditions. The deal for HCA, which was sole lead managed by Deutsche Bank, was priced with an 8.75% coupon.
  • Accusations flew this week as five of the six bidders in the Italian UMTS auctions walked away with licences for just Eu2.4bn each. Blu, backed by British Telecom and Autostrade, withdrew after talks aimed at persuading BT to take a majority stake in the group failed.
  • The Inter-American Development this week enhanced its reputation as a global market issuer by increasing the size of its 7% June 2003 bond by $1bn to $3bn. The deal proved to be a perfect instrument for investors looking for a safe haven at the short end of the dollar market as a refuge from continued volatility in the credit markets.
  • The Republic of Hungary surprised the market this week by launching an aggressively priced Eu400m tap of its Eu600m November 2005 floating rate note (FRN) issue via Bayerische Landesbank and Chase Manhattan. The benchmark Eu1bn issue is now the largest ever issue from Baa1/BBB+/BBB+ rated Hungary, as well as its only one this year, and the biggest public bond offering from central and eastern Europe.
  • Chase and JP Morgan's merged investment banking operation, to be called JP Morgan & Co, has a new global head of institutional equities, Steven Black. He comes from the Chase side. Also from Chase, Doug Braunstein and Jeff Walker have been made co-heads of M&A. Don Wilson and Bill Winters, who was head of interest rates and FX at JP Morgan, become co-heads of credit and rate markets.
  • Brazil The $150m trade finance loan being arranged by Citibank and HSBC for BankBoston SA (Brazil) has been oversubscribed and increased to $180m.
  • Abu Dhabi The sub-underwriting phase of the $1.015bn project financing for the Taweelah A1 independent water and power project has found a good reception from the market and is being wrapped up by mandated arrangers BNP Paribas and Citibank/SSSB.