Search results for

THE ASIAN Development Bank (ADB) looks set to sharply increase its fundraising programme, with plans to raise up to $9bn over 1998. The ADB could not be reached for confirmation of its plans, but bankers said the Manila-based supranational will attempt to raise nearly three times its traditional borrowing requirement, splitting the projected amount equally between the dollar, yen and euro-currency markets.

DIFFICULT market conditions have prompted Philippine company Bayan Telecommunications Holdings Corporation (BayanTel) to execute a private placement of convertible preferred shares via Chase Manhattan, rather than face the public equity markets. The shares are redeemable at the end of five years, unless previously converted to common shares, and have a US dollar yield of 6.5% and a dividend yield of 2%. They are guaranteed by Benpres Holdings Corporation which, with its affiliates, owns 68.76% of BayanTel.

JAPAN'S SECOND largest bank, Sumitomo Bank, has raised $1.8bn in tier one capital through the sale of non-cumulative per-petual preferred shares in a move to bolster its capital base and to protect it from currency risk. Lead managed by Goldman Sachs, the issue marks the first time that a Japanese bank has sold dollar denominated prefs through a US incorporated vehicle (Sumitomo Leasing and Finance).

THAILAND'S PTT Exploration and Production is on the starting blocks for a 31m share selldown which could raise up to Bt17bn, after the government selected five banks this week to run the process. Goldman Sachs, Lehman Brothers and Credit Suisse First Boston have been mandated as joint global co-ordinators, while Phatra Securities and Thai Investment and Securities will act as joint domestic co-ordinators.

NOMURA SECURITIES and Merrill Lynch this week launched Toyota Motor Corp's first public bond offering in Japan, raising ¥200bn ($1.6bn) in 15 minutes, and buoying hopes of a revitalised domestic bond market. Toyota's turn toward financing at home coincides with a revival in Japan's straight bond market as banks continue to tighten their balance sheets before the BIS deadline at the end of the financial year on March 31.

THE Federative Republic of Brazil will next week make its first appearance in the Eurobond markets of 1998 when it launches an inaugural five year deal of around Ecu250m that redenominates into euros. The deal, mandated to SBC Warburg Dillon Read and Paribas, follows the blowout Ecu400m offering by the Republic of Argentina late January, which has tightened to trade at 355bp from a launch spread of 412bp.

* Export

THE FIRST test of investor appetite for Latin new equity issues in 1998 will get underway in the week ahead when Salomon Smith Barney and Santander take Colombian cellular phone company Celumovil on the road to market its initial public offering. The deal, which includes JP Morgan as a co-manager, will be a major test of the water for one of the worst hit equity new issue markets since the Asian markets collapse.

CREDIT Suisse First Boston has launched an innovative two tranche financing in the US 144A market for Telecom New Zealand Finance Limited which achieved the capital treatment requirement of the borrower. The deal consisted of a $150m five year issue paying a coupon of 6.25% and priced to yield 85bp over Treasuries; and a $150m 10 year issue with a coupon of 6.5% and paying a spread of 105bp over. The bonds were rated Aa2/AA- by Moody's and Standard & Poor's respectively. Merrill Lynch and Morgan Stanley were co-leads on both tranches.

Market appraisal:

* Aegon NV