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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  • 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.
  • Punch Group, the UK’s largest pub company, pulled off a corporate financing triumph this week by refinancing its acquisition of pubs from Allied Domecq with a £1.484bn securitisation that is by far the largest packaging of operating business cashflows.
  • Lehman Brothers launched the $640m government selldown of Polski Koncern Naftowy Orlen (PKN) shares this week in a move which bankers hope will spark renewed interest in the company, which has become increasingly undervalued compared to its peers since its IPO. Analysts said that despite earnings upgrades in its core business and the surging valuations of its cellular business, the stock is just 5% above its IPO price.
  • THE REPUBLIC of Colombia successfully increased its debut euro transaction from Eu200m to Eu300m this week, as European retail drawn to the 11% coupon on offer poured into the issue. Colombia has in the past struggled to attract retail, partly because its history as an investment grade credit has led it to insist on offering yields lower than other Latin American sovereigns.
  • Punch Group, the UK’s largest pub company, pulled off a corporate financing triumph this week by refinancing its acquisition of pubs from Allied Domecq with a £1.484bn securitisation that is by far the largest packaging of operating business cashflows.
  • SASOL, the South African fuel and chemical manufacturer, launched a R900m bond issue on Wednesday, establishing the first benchmark in the South African corporate three year sector. Lead managed by Investec Bank and Standard Corporate & Merchant Bank, the deal was also the first bond to be issued off a domestic medium term note (MTN) programme.
  • Denmark The general syndication of the Dkr150m three year credit for Nordvest Bank is well on track. Arranger LB Kiel has received verbal commitments for the full amount, well ahead of the closing date.
  • * Nordic Investment Bank Rating: Aaa/AAA
  • Domestic issuance: * Sasol Financing Pty Ltd
  • * Associates Capital Corp plc Guarantor: Associates First Capital Corp
  • UBS Warburg sold a Eu850m bond for Suez Lyonnaise des Eaux exchangeable into Fortis shares, which attracted positive, if muted, comment from the market. The bond was limited by the constraints of two existing equity linked issues for Fortis, a Dfl 1.5bn issue from October 1998 and a Eu575m deal, managed by Warburg's in June 1999. With both of these trading around issue price, bankers said it was difficult to find a new attraction for this deal.