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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  • Salomon Smith Barney scored a success with Neptune Orient Lines this week when the equity component of the deal was increased to $500m, removing the need for the more costly preferred share offering. The deal had originally been seen as proof that the combined SSB-Citibank had an edge in gaining broad fundraising deals, with Citibank due to raise $200m through redeemable non-convertible preference shares and SSB $300m in equity.
  • n The Nordic Investment Bank (NIB) has increased its debut Singapore dollar bond by a further S$50m. Salomon Smith Barney was lead manager of the increase for the outstanding S$150m five year deal, pricing the new line of paper at 99.471 with a 4.125% semi-annual coupon to give a 4.25% yield to maturity. The supranational's debut in March via Citicorp comprised two tranches of five and 10 year paper.
  • Malaysian oil company Petroliam Nasional Berhad (Petronas) is seeking to take advantage of a lull in the Asian pipeline with the launch of its first benchmark dollar bond in almost three years. Roadshows for a $750m plus five to 10 year global bond begin next Monday in Tokyo under the lead of Credit Suisse First Boston, with Barclays Capital and Chase appointed as joint leads.
  • Société Générale this week launched the first securitisation of Australian mortgages denominated in euros, and succeeded in expanding the investor base for the asset class. The Eu175m offering repackaged one tranche of a simultaneous domestic MBS issue by Residential Mortgage Acceptance Corp Ltd. Resimac is a mortgage financing vehicle set up in 1995 by FANMAC.
  • Political tensions and a ratings downgrade by Standard & Poor's underscored volatile sentiment toward China this week, although a number of 'H' share listings are still planned for after the summer break. Bankers said that Merrill Lynch has been appointed adviser to Bao Steel's prospective 'H' share listing, a deal that may raise between $1bn and $2bn.
  • Roadshows began in New York on Wednesday for a $300m to $500m dated upper tier two capital raising by the Development Bank of Singapore (DBS). Representing a first of its kind from the city state, the prospective deal also marks the first truly internationally placed subordinated bank deal from Asia since a Siam Commercial Bank transaction in spring 1996.
  • Australia Reckon and Austar United Communications both made impressive debuts this week as Australia's love affair with telecom and internet stocks continued. Hutchison Telecom is also generating excitement among investors.
  • A deluge of China Telecom shares may be set to flood the market as the company gears up for a massive fundraising and some strategic investors look to offload their stakes. China Telecom is likely to raise up to $1bn in new equity as part of its $3bn-plus fundraising to finance the acquisition of three provincial mobile telephone networks.
  • Korean banks are set to make a fresh assault on the GDR market, raising up to $2.3bn in the wake of Hanvit Bank's $1bn issue which closes next week. Kookmin Bank is believed to have mandated Goldman Sachs for a $1bn GDR issue while Morgan Stanley Dean Witter, Commerzbank, Hyundai and Jardine Fleming have been mandated for a $1bn GDR sale for Korea Exchange Bank.
  • The Standard & Poor's downgrading of the People's Republic of China this week added a new twist to the sovereign's likely difficulties in successfully launching a new benchmark early in the autumn. Dropping the sovereign rating from BBB+ to BBB has also widened the agency's rating differential between the Mainland and Hong Kong to three notches.
  • n ING Barings-BBL this week brought another new issuer to the Japanese securitisation market, parcelling 22,726 consumer instalment sales contracts for GC Corporation, a subsidiary of Promise Co, one of the larger listed finance companies in Japan.
  • Global co-ordinator Lehman Brothers is to reveal the price today (Friday) for the sale of stock in Versatel, the Dutch telecommunications group. With the deal benefiting from an outstanding response from institutional investors seeking to gain access to the Nasdaq/Amsterdam listed shares, buyers will likely be asked to pay the top end of the Eu8 to Eu10 indicated price range.