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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  • BRAZIL this week set a $11.7bn (R$13.47bn) minimum price tag on the shares it is selling in Telebras, the public telephone company due to be auctioned on July 29. The minimum price on the government's 20% stake in Telebras was within market expectations.
  • THE OUTLOOK for more than $1.7bn of planned Chilean Yankee bonds looked grim this week, as Chilean spreads widened out as much as 25bp to 40bp on further weakness in copper prices, and Empresas CMPC, a paper products company, had to reduce sharply the size of its Yankee debut. CMPC became the first Chilean issuer to brave the US Yankee market this year, with its $250m seven year Rule 144A deal led by JP Morgan. Originally, however, the deal was targeted as a $400m 10 year deal.
  • CREDIT Suisse First Boston has launched a $300m convertible for Budget Rent-a-Car, taking the sophistication of the US equity-linked debt market to a new plane. Dubbed 'High Tides', the structure was created to match investor demand for short term convertible bonds -- as well as offering the issuer as many of the attractive features of both debt and equity with as few of the drawbacks as possible.
  • * World Bank Rating: Aaa/AAA
  • BANKGESELLSCHAFT Berlin, Bayerische Vereinsbank and Deutsche Bank have closed general syndication of the DM120m five year term loan for Ceskoslovenska obchodni banka. Syndication was well supported with many bankers suggesting that this has been one of the region's most successful deals of the first six months of 1998.
  • CONDITIONS in the German stockmarket continue to provide a strong backdrop for the record number of capital increases which the country's corporates will initiate over the next few months. The market is maintaining a firm tone on the back of persistent strength in the dollar, which is boosting exports, and renewed confidence in the widespread reorganisation of many of Germany's largest corporates.
  • * DG Bank is understood to have secured the lead management mandate for the first international bond offering for the City of Budapest. The city authorities are looking to raise DM150m over a five year tenor. * Dresdner Kleinwort Benson is looking to complete a DM50m five year private placement for Slovakia's second city, Kosice, next week. Bankers' expectations are that Kosice's debut Euromarket issue will be targeted at Italian fund managers, which have been major buyers of emerging market risk of late.
  • * BBV International Finance Ltd (Grand Cayman) Guarantor: Banco Bilbao Vizcaya SA
  • BOND markets rallied strongly this week on the back of further troubles in Japan and Asia, with the yen dropping still further and the Hang Seng falling dramatically. The rally was too much for many investors' and bankers' comfort as government bond yields hit record lows, leaving spread products trailing in their wake.
  • * Deutsche Ausgleichsbank Rating: Aaa/AAA
  • Angola SG (New York) has arranged a $87m US Eximbank guaranteed loan for Halliburton Energy Services, a subsidiary of Halliburton Co of the US. Halliburton will use the loan to part finance development of the Cabinda concession, a project developing the Cabinda oilfield off the coast of Angola. The total financing is about $200m and will be secured by the proceeds of the oil sales through an escrow account.
  • THE BELEAGUERED Latin new issue market received a welcome boost this week when the Republic of Argentina launched a DM1bn 12 year step-up coupon transaction. The deal, led by Deutsche Bank, was the only Latin offering in the Eurobond markets in yet another week of Russian and Asian-induced spread widening among Latin benchmark bonds.