Search results for

THE expected rush of Korean borrowers into the international debt markets immediately behind last week's groundbreaking $4bn sovereign global bond looks unlikely to materialise for at least a couple of weeks as potential issuers wait to see where spreads stabilise. The strong secondary market performance of the Republic of Korea's twin tranche global has gratified and disillusioned in equal measure; with investors reaping substantial gains and highly vocal sections of Korea's domestic press berating the government for setting an unnecessarily high benchmark.

BARELY a couple of weeks after the international markets reopened to Korean issuers, so many of the country's second tier corporates are trying to launch convertible bonds that the Ministry of Finance is considering limiting the number of new issues to five over the forthcoming months. Various companies from the major Chaebols, including Hyundai Construction and Daewoo Heavy Industries, are lining up to raise funds to provide working capital. However, bankers point out, investor demand is not assured. "Finding demand is the key for these issues. Investors only want the first tier companies - but they are not the ones that need the capital," said one banker.

MORGAN Stanley Dean Witter has emerged as the frontrunner to win the mandate for the convertible bond from Wharf Holdings, following the bank's recent CB for New World Infrastructure (NWI). Bankers caution, however, that the terms should not be as aggressive as for the Wharf issue, claiming that the constant supply of convertibles from Hong Kong is starting to tire investors. NWI traded out immediately after launch. "Morgan Stanley have kept up a cracking pace in the convertible sector since the beginning of the year but NWI showed even they could put a foot wrong if they do not listen to the market," said one banker.

THE PHILIPPINES National Power Corporation (Napocor) will launch imminently its long-awaited Yankee bond, with roadshows likely to kick off either at the end of next week or beginning of the week after. Bankers said that the state owned group is hoping to take advantage of the positive sentiment generated by the recent global bond from the Republic of the Philippines, which has continued to feed through into strong secondary market trading.

* Deutsche Morgan Grenfell in London this week suffered a blow to its ambitions of building one of the world's leading emerging market debt franchises with the loss of Jonathan Brown, director of its emerging market bond syndicate to arch rivals JP Morgan. In his new role Brown will report to Richard Luddington, global head of emerging market debt syndicate. JP Morgan is one of an elite group of investment banks that can truly claim to be a global player in the emerging market debt sector. Brown's recruitment will boost the bank's already impressive pedigree.

Arrangers of the £1.6bn debt facilities backing Great Universal Stores' (GUS) planned acquisition of Argos have signed participating banks into the deal. Merrill Lynch, and not SBC Warburg as reported last week, brought in banks at either the senior underwriter level or senior lead manager level.

* Caisse Française de Développement (CFD) Guarantor: Republic of France

* PNC Bank NA Rating: A1/A

Austria Creditanstalt, HSBC and Union Bank of Switzerland have won the coveted mandate to arrange a Asch7.5bn project finance facility for Connect Austria, the consortium developing Austria's DCS 1800 network. Connect is owned by TeleNor, Tele Danmark, Viag and Orange. The deal is in due diligence and the arrangers expect to launch financing later in the second quarter. France

9192

* Paribas has been mandated for the ratings advisory and lead management mandate for the debut Eurobond for the Bulgarian capital, Sofia. The French bank has won out against competition from Deutsche Morgan Grenfell, Nomura, and UBS, whittled down from an original group of 14 bidders.

* Paribas has been mandated for the ratings advisory and lead management mandate for the debut Eurobond for the Bulgarian capital, Sofia. The French bank has won out against competition from Deutsche Morgan Grenfell, Nomura, and UBS, whittled down from an original group of 14 bidders.