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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  • As the European Commission's investigation into state support enjoyed by the Landesbanks progresses, and the likelihood of fundamental change to the German banking landscape increases, analysts are focusing on what the future holds for the sector.
  • Even before the 11 founder members of Emu had officially fixed their currencies against the euro, their neighbours in central and eastern Europe were readying offensives to join the EU elite.
  • With their increasing appetite for debt, telecoms companies are working hard to keep investors happy. To keep markets open, they have offered credit sensitive coupons and forward-looking pricing.
  • Rarely is the credit quality of a triple-A borrower such as the European Investment Bank or Kreditanstalt für Wiederaufbau questioned. Where, then, can value be found at the very top of the credit spectrum?
  • 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.