Enron has signed its second MTN programme this year - a $1 billion Euro-MTN shelf. Merrill Lynch scooped the arrangership, but no dealer panel has been appointed. Jeff Nogid, manager of global finance at Enron, says: "Our banking relationships are dynamic, but we won't list dealers on the programme. It means we will have to rely on reverse enquiry, but we like to keep our windows open." Enron, an energy company based in Houston, Texas, signed a domestic MTN programme without a dealer panel in the second quarter of this year. The $500 million domestic shelf was also arranged by Merrill Lynch. The two programmes were planned together, but delays in listing the Euro-MTN shelf in Luxembourg meant that it was not signed until three weeks ago. Nogid, at Enron, explains why the Euro-MTN shelf was necessary: " We're expanding in Europe and looking for new sources of cash and new investors." The issuer chose not to set up a global MTN programme in order to concentrate on its two investor groups separately. Nogid says: "We prefer a more targeted group of investor." It is the fourth issuer to enter the MTN market this year without a dealer group. Banco Rio de la Plata signed in March, followed by Diversified European Credit in July and Old Mutual last month. Nogid thinks going it alone will not be an obstacle. He says: "So far we have issued one trade off the domestic programme and not having a dealer panel doesn't seem to be a problem. We find it easier to deal with dealers as and when there is enquiry." The issuer is open to investors from all sectors and to trades in all currencies. Nogid adds: "Obviously the euro is the big one. We will probably issue mainly short-term floaters or long-term standard notes." The programme was set up for the daily cash needs of the company. Nogid adds: "We are a company rapidly growing from within, as much as through acquisitions. We don't need funds at the moment, so there are no immediate plans to launch the inaugural issue. But it's good to have a programme set up so we can access the market quickly if we need to." Moody's rates Enron and its Euro-MTN programme Baa1 long-term.
September 22, 2000
