Search results for

THE Japanese government announced its intention to alter the terms of its railway privatisation programme this week, in a move which further threatened confidence in the country's already fragile equity market. The country's transport minister, Takao Fuji, said he is planning to introduce legislation to force seven privatised rail companies to take on ¥500bn ($3.8bn) worth of pension liabilities incurred by the Japan National Railroad.

FUJI BANK plans to securitise loans in the international bond markets before the fiscal year closes at the end of March, a bank official confirmed this week. Fuji hopes to structure the transaction itself, but will employ an investment bank to distribute the bonds. Three leading American houses are in the running, one of which is Goldman Sachs.

India Arranger SocGen Asia has invited selected banks into the $50m fundraising for Maharashtra State Electricity Board. Fees are 35bp for lead managers with commitments of $5m to $7m and 21bp for managers taking $3m to $4m.

INVESTORS IN the Eurobonds of Brazil's Ceval Alimentos received an early Christmas gift this week when the company's new owners, Bunge y Born, offered a three to four point premium to buy back $178m worth of $200m outstanding Ceval bonds. As part of its acquisition of the struggling grain processing company, Bunge tendered for two Ceval deals: the $100m 10.625% 2004s led by Chase and the $100m 11.125% of 2004s led by Citibank. It received tenders for 89% of the bonds, at a price that implied a spread of 410bp to the 2001 calls in both bonds, about 100bp tighter than secondary market levels.

LEHMAN BROTHERS has successfully completed a $425m offering of 10 and 30 year debt for Israel Electric in the Yankee bond market. Despite the market being spooked by the failure last week of Korea Development Bank to issue a $2bn Yankee via JP Morgan, Lehman pushed on with the transaction. Braving the difficult market conditions Israel Electric's second Yankee offering raised considerably more than targeted.

* Inter-American Development Bank Rating: Aaa/AAA

11683

Argentina BankBoston Trust Co Ltd and Dresdner Bank Luxembourg have completed the $100m five year loan-style FRN for Transportadora de Gas del Sur SA (TGS).

Qatar The State of Qatar's $200m five year term loan has been increased to $250m after syndication proved a blow-out success.

BANKERS are working until year end to prepare for a flood of new issues and equity linked debt securities due to emerge from the primary equity markets of central Europe and Russia. These offerings, in many cases, represent deals already due to reach the markets by the end of 1997 but which have become side-tracked as a result of the volatility which has afflicted emerging and developed stockmarkets. One of the first two mandates to be awarded will be for the lead slot in the Polish government's sale of stock in Poland Telecom and Estonia Telecom. Bankers are pitching their credentials in beauty parades over the next week or so and the winning firm will be announced in the new year.