Search results for

Lehman Brothers will launch a $150m convertible bond for Taiwan's ASE Test next week in a deal which will gauge the level of confidence in the recovery of the Dram market. The Nasdaq listed company is the largest independent semiconductor tester in the world. Only $100m of the deal will be placed to institutional investors, with the rest going to the parent company ASE Inc. The bonds will be convertible into Nasdaq listed shares and will be sold under Rule 144a.

The Philippines National Power Corporation (Napocor) has re- activated plans to access the international capital markets following a hard won victory to secure a power rate increase from the government.

Shin Corporation intends to become the first Thai company to be listed on the ADR market. JP Morgan will manage the ADR programme, which could be as large as $150m, although no new equity will be raised. At first glance the choice of the US house is surprising, given its withdrawal from the Asian equity capital markets at the beginning of 1998. However, the programme will not involve the sale of new equity but simply an increase in the foreign ownership limit from 35% to 49.9%, which will be sold on as ADRs according to demand.

Warburg Dillon Read and Samsung Securities completed a $200m GDR sale for Samsung Display Devices yesterday (Thursday). A total of 17m GDRs were sold at a discount of 8%, from a discount range of 0% to 10% of the underlying stock. Bankers said the issue was comfortably subscribed with some bankers suggesting an oversubscription of two times. The issue traded up to $11.80 during the afternoon session on Seaq, from an issue price of $11.69.

The Sri Lankan government is again reviving plans for a major international bond issue that will form the beginnings of a full yield curve from the country. To be issued via the Central Bank of Sri Lanka, the $150m to $200m transaction is being lined up for launch in either September or October on the back of exploratory talks with the rating agencies. Having hoped to set a sovereign benchmark since the beginning of 1998, the government has, however, pulled back twice from advancing its ambitions in the face of deteriorating market conditions.

The nervous tone in the US stockmarket slowed primary market activity this week as prices dipped in response to growing fears of a rise in US rates and as the internet sector, which has dominated the new issue market, lost further ground. For the first time in months, however, the new issue spotlight was not on the technology sector. Taking centre stage in a quiet week was the Merrill Lynch-led IPO of Azurix Corp, the water company created in January by power giant Enron.

France Barclays and Crédit Lyonnais have been officially mandated to arrange the coveted Eu400m reducing revolving credit for Framatome.

Market commentary: Compiled by Vusi Mhlanzi,

n British Energy plc Guarantor: British Energy Generation Ltd, British Energy Generation (UK) Ltd

n Crédit Local de France Rating: Aa1/AA+

n General Electric Capital Corp Rating: Aaa/AAA

GEC has signed its latest facility - the Eu2.5bn (increased from Eu2bn) one year less one day multicurrency revolving credit. The facility carries a margin of 25bp over Libor with a commitment fee of 10bp. There is also a utilisation fee of 5bp if between 50% and 100% of the loan is drawn down, giving a fully drawn margin of 30bp.