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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  • European investors in Australian mortgage backed securities were offered deals from two new originators in the last week - brought by two new bookrunners. Last Friday ABN Amro launched $500m of senior and junior MBS for its non-bank subsidiary, Australian Mortgage Securities Ltd - and this week Warburg Dillon Read priced $492m of senior bonds for Colonial State Bank.
  • Australia Austar's A$369m to A$423m IPO is believed to be at least ten times covered. The Credit Suisse First Boston and Morgan Stanley Dean Witter-led deal is due to close and price over the weekend.
  • The Thai banking sector continued its rehabilitation this week with Industrial Finance Corporation of Thailand (IFCT) raising $175.85m despite sluggish local demand. In order not to breach the 49% foreign ownership limit, 51% of the new issue had to be sold to local institutions, although locally registered foreign owned institutions qualified as local buyers.
  • Kowloon Canton Railway Corporation (KCRC) emerged as Asia's newest and most promising borrower this week with the launch of its $1bn debut Eurobond. Ranking as the largest ever pure Eurobond from the region and the biggest single tranche offering from Hong Kong, the success of the 10 year transaction turned many of the region's traditional borrowing assumptions on their head.
  • Korea Electric Power Corporation (Kepco) made an impressive debut in the euro-denominated bond market this week with a Eu300m offering. Priced in line with the BBB-/Baa3 rated group's ambitious expectations, the five year deal ranked as the first euro denominated deal from Korea and only the second ever corporate deal from Asia following Hutchison Whampoa's debut in March.
  • HSBC Investment Bank successfully closed New World China Land's $568m IPO this week with the international tranche of the deal around two times oversubscribed. Despite some last minute jitters as the Hang Seng experienced a volatile week, the relatively large market capitalisation of the company and its sizeable freefloat attracted investors eager to reweight their portfolios.
  • Merrill Lynch, Salomon Smith Barney and Dong Won Securities completed a $880 ADR sale for Posco this week at a tight discount to the prevailing price. The deal was around two times covered despite an increase in the size of the stake sold by Korea Development Bank (KDB), from 23.2m ADRs to 26.84m ADRs.
  • Austria Raiffeisen Zentralbank has arranged a Asch1bn club revolver for Hild Haustechnik Group, one of Austria's leading traders of sanitary equipment. The deal was oversubscribed but not increased and will be used for working capital.
  • ABN Amro and JP Morgan are preparing to launch the Eu2.6bn acquisition facility for Royal Numico to co-arrangers. Banks will be offered a choice of two tickets - Eu200m and Eu125m. Participation fees are 40bp and 30bp. HSBC, ING and Dresdner have already joined at this level, the former two arrangers of the now cancelled Eu300m credit for Numico said that the deal was to be used for general corporate purposes.
  • South Africa Early reports indicate that general syndication of the $225m 364 day revolving credit for Standard Bank of South Africa is progressing well with German, Italian and Middle Eastern banks showing strong interest in the deal.
  • Alliance & Leicester will join the growing list of UK financial issuers in the euro sector next week when it launches a debut issue in the single currency. Alliance completes its roadshow presentations in Dublin today (Friday), having visited Paris, Brussels, Frankfurt, Düsseldorf and London earlier in the week.
  • The Republic of Argentina was forced to shelve a $500m domestic debt swap this week after one of the country's presidential candidates wrought havoc in the local and international bond markets by announcing he would seek papal support for an Argentine debt moratorium.