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 IMPROVEMENT in tone of the Latin American markets since Brazil reached agreement with the IMF, but that improvement has yet to feed through judging by the prices Latin corporates had to pay for international bond issues this week. Privatised Argentine mortgage bank Banco Hipotecario launched a $100m three year bond on Wednesday (via Salomon Smith Barney) offering a spread pick-up of 128bp over comparables, as well as a warrant whose value equated to another 25bp of concession.
  • Argentina Arrangers Bank of America and Barclays Bank (Miami) have completed syndication of the 364 day $300m L/C facility for Banco Rio de la Plata SA.
  • Credit Suisse First Boston and Dresdner Kleinwort Benson denied claims yesterday (Thursday) that the Republic of Lithuania had decided to postpone the launch of its long awaited Eu200m five year bond. While admitting this month's unsettled market conditions had complicated the bookbuilding process, officials from both banks maintained that they are looking to bring the Ba1/BBB- rated deal to market next week.
  • NATIONAL Bank of Egypt's decision to raise a $150m term loan through arranger Citibank could herald the start of a busy four months in Egypt. According to bankers, as many as five Egyptian financial institutions are preparing to tap the international syndicated loan market over the coming months, possibly including Banque du Caire, Banque Misr, Commercial International Bank and Egypt Arab African Bank.
  • n The European Bank for Reconstruction and Development will today (Friday) announce a buyback offer for its Rb400m 25% one year issue launched last March, which is due to mature on April 1. The tender, which will run from March 19 to March 26, will be conducted by ING Barings which lead managed the issue.
  • The sale of stock in Canary Wharf is proceeding smoothly with the valuation likely to come out at between £1.9bn and £2.3bn. Some 167m shares will be sold by global co-ordinator, Morgan Stanley Dean Witter at between 280p and 350p. According to the pathfinder prospectus published this week, the group will raise around £470m to £585m in new money and the 85 acre development will have its assets valued at £2.65bn.
  • Market commentary: Compiled by Glenn Blackley, RBC DS Global Markets, London. Tel: +44 171-865 1759
  • KfW International Finance Guarantor: Kreditanstalt für Wiederaufbau
  • The unique and record-breaking financing of Olivetti’s takeover bid for Telecom Italia continued to take shape this week as it was revealed that the planned $15bn bond issue for Tecnost would be a five year floater paying a spread of 150bp to 200bp over Libor.
  • VENEZUELAN oil company PDVSA is expected to go on the road next week with a $1bn structured offering similar to that launched by Pemex in February. The deal, underwritten by Goldman Sachs, will be split into multiple tranches and will be the second issue from a $6bn structured programme that PDVSA launched last year. The inaugural deal came in the first half of 1998, when PDVSA issued $1.8bn.
  • THE UNIQUE AND record-breaking financing of Olivetti's takeover bid for Telecom Italia continued to take shape this week as it was revealed that the planned $15bn bond issue for Tecnost would be a five year floater paying a spread of 150bp to 200bp over Libor.