Search results for

>

International yen bonds are back in the mainstream of the global debt capital markets after years in the wilderness. They outperformed all other currency sectors last year in terms of total returns. The market is no longer the private fiefdom of OECD sovereigns and supranational credits. Mark B Johnson reports on a year in which the yen returned to centre stage for issuers and investors alike.

AFLAC Incorporated, the largest foreign insurance company in Japan, is set to be latest in the international corporate stream of companies seeking to raise Samurai debt. The company is planning a ¥30bn bond issue, having made a shelf registration with the Japanese regulatory authorities last week for a fund raising programme of up to ¥100bn over a two year lifespan.

There was speculation this week that Richard Li intends to buy back some of the Pacific Century CyberWorks (PCCW) shares he sold in his surprise block sale in late August. The news helped the shares bounce back to HK$9 on Wednesday, having slumped to a low of HK$8.20 following the 4.9% block disposal by Cable & Wireless last week. Bankers in Hong Kong see this as a somewhat desperate move to shore up the stock, and believe it likely to take place in coming weeks.

The Sinopec float is finally out of the pipeline. China Petroleum & Chemical Corp (CPCC), Sinopec's listing vehicle and China's largest oil refiner and number two integrated oil company, will sell 16.78bn shares to raise about $3.5bn at the mid-point of the offer range and before the greenshoe. However, the Hong Kong retail market and international institutions will not be expected to take anywhere near that amount of stock. Sinopec is placing 60% of the issue with strategic oil company investors and four Hong Kong corporate investors. This will leave around $1.4bn for other investors before the 2.517bn share greenshoe option.

Australia Standard & Poor's (S&P) lowered telecommunication firmTelstra's debt ratings from AA/A1+ to A/1 this week. The agency has had the company on creditwatch since April. The outlook is now stable.

Oversubscription in excess of $15bn for KPN's $4.4bn equivalent global financing highlighted the appetite for telecoms paper this week, heralding a warmer than anticipated reception for the upcoming supply due from France Télécom, Telecom Italia and BT before year end. KPN's four tranche issue, including five, 10 and 30 year pieces denominated in dollars, and a five year in euros, was priced through spread talk and massive oversubscription resulted in sharp tightening after break of syndicate, before profit-taking took the spreads back yesterday (Thursday).

What a good call by Deutsche Bank to confirm that Josef Ackermann will succeed the increasingly erratic Rolf Breuer as chairman. Do not be fooled by the fact that Rolfy is not officially supposed to step down until early 2002. From Frankfurt our top informant, the much feared Heidi von Grippenutz, says that in the local bars and speakeasies, you cannot even get odds of 2-1 against Rolfy still being there by April 1, 2001. Deutsche had to send out the right signals and this was impossible while Breuer remained at the top of the greasy pole. It did not matter that professional Deutsche watchers such as ourselves and rival bankers knew that Breuer had probably peaked when, after the disastrous attempt to merge with Dresdner, Breuer's colleagues on the Vorstand cleverly changed his working schedule to schmoozing at cocktail parties, kissing babies and opening church bazaars. Without being too unkind, one of Breuer's few claims to fame as chairman of Deutsche was to buy Bankers Trust.

Ghana Arrangers Barclays, Commerzbank, Crédit Lyonnais (bookrunner), Dresdner Kleinwort Benson (documentation), Ghana International Bank (collection agent) and Standard Chartered (bookrunner) have signed banks into the $260m annual pre-export finance facility for Ghana Cocoa Board (Cocobod). The deal was oversubscribed but not increased.

Roadshows start next week for TXU Europe's debut bond issue in euros. The energy utility is approaching investors for at least Eu300m of five year paper via Morgan Stanley Dean Witter and UBS Warburg. The deal, to be launched via TXU Europe Funding No 1, will offer investors a rare opportunity to buy triple-B rated energy utility paper in euros. But, the issuer's long term Baa1/BBB+ ratings come with a negative outlook, leading some analysts to suggest basis points will need to be left on the table for the issue to be well received.

Peninsular & Oriental Steam Navigation (P&O) this week announced a 12% rise in half year pre-tax profits, despite facing increased pressure from rising fuel prices and additional capacity. It also outlined its plan to split the company into logistics and cruises divisions from October 23. P&O plans to demerge its cruises division to form P&O Princess Cruises, and holders of the company's outstanding debt will be able to exchange their bonds for securities issued by the new cruises company.

China Arranger BA Asia is forming an arranger group for a $100m 364 day L/C facility for Minmetals Capital & Securities.