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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  • If value at risk forecasts based on an internal market risk model, such as M, are used in practice, it is of crucial importance to know whether M's forecast quality is sufficiently high to be relied on.
  • IBM tapped the Samurai bond market this week, offering ¥140bn of two year bonds. The transaction marked the largest ever deal for a corporate in the Samurai market and helped propel the week's issuance to levels almost surpassing 1998's entire Samurai issuance. The bond was lead managed by Daiwa SBCM and Merrill Lynch. The deal was issued at par, and carries a semi-annual coupon of 0.62%. It was priced at 5bp over yen Libor. IBM is rated A1/A+ by Moody's and Standard & Poor's respectively.
  • THE Department of Finance of the Republic of the Philippines and Korea Electric Power Corporation (Kepco) plan to raise yen denominated bonds, as global market volatility continues to leave the euro and dollar bond markets unappealing for issuers. The potential borrowers said the relative stability of the yen market had heavily influenced their decision to finance through yen.
  • BRISBANE Airport Corp (BAC) is planning to raise about A$350m through a credit-wrapped domestic bond issue, following up several recent domestic bond issues after a quiet period in the market. The bond will probably have a maturity of 10 years, and will be backed by a financial guarantee from MBIA Insurance Corp. The issue is rated Aaa by Moody's and AAA by Standard & Poor's.
  • MERRILL Lynch scored a success with the placement of A$363m of new CSL shares last Friday, the largest share issue from Australia this year. CSL stock jumped almost 31% after the global accelerated bookbuild exercise, which raised new funding to partially finance the company's purchase of the Swiss Red Cross blood plasma unit for A$1bn.
  • Hong Kong Crédit Lyonnais, Hong Kong Branch issued a floating rate certificate of deposit (FRCD), raising HK$1bn through a one year tenor. The FRCD issue carries a coupon of one month Hibor plus 10bp. The issue was lead managed by BNP Paribas Oakreed and Commerz. Crédit Lyonnais is rated A2 by Moody's. The notes are issued off Credit Lyonnais' HK$5bn certificate of deposit programme.
  • Australia The CBA bookbuild closed late last week and resulted in the sale of 9.6m shares at A$26.50 to raise A$254m to provide cash for Colonial shareholders that opted not to swap their shares for new CBA stock. The price was a discount of 1.7% to the average price of A$26.97 on the day of pricing.
  • MORGAN Stanley Dean Witter has raised the price range for the China Unicom IPO, and the result of the bold move will be known later today (Friday). The new price range was set late last week because of the positive response the issue was generating around the world, according to sources close to the deal. The stock will begin trading on June 21 in New York and June 22 in Hong Kong.
  • The bank presentation for the Eu30bn jumbo for France Télécom is in London today (Friday). Invitations have gone out to 60 banks to join the co-arranger phase, with the mood resoundingly positive. Even aside from the keen interest shown by banks throughout the loan market, the six arrangers have good reason to feel confident about the facility, having already received commitments from about 10 banks.
  • The Inter-American Development Bank and the Japan Bank for International Cooperation this week took advantage of the strongest international demand for dollar product so far this year to launch benchmark globals that enhanced their profiles in the sector. The IADB launched the larger deal, a $2bn three year issue via Deutsche Bank and Goldman Sachs. The issue is the borrower's second benchmark dollar transaction of the year and one the borrower hopes will enhance its position among to its peers.
  • DOLLAR issuance continued at a furious pace this week, prompting swap spreads to tighten further. They gradually fell over the course of the week, despite pushing higher on several occasions. By the end of the week, the five year mid-market was around 97.5bp over Treasuries, while the 10 year was at 122bp over Treasuries. These prices are about 4bp-5bp tighter than last week.
  • India Syndication for the $180m one year financing for Oil & Natural Gas Corp, arranged by BA Asia, has closed. The deal was funded in April and participants joined via substitution certificates.