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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  • THE AUSTRALIAN government's privatisation of national telecoms operator Telstra has been a runaway success, raising A$14.3bn in spite of the volatility that has wracked world stockmarkets over the last month. The triumphant conclusion of the transaction, by far the largest ever seen in Australia, is a notable achievement for global co-ordinators ABN AMRO Rothschild, CS First Boston and JB Were and for the Australian finance ministry itself.
  • * Mercury European Privatisation Trust plc (MEPIT) Rating: AA-
  • Domestic issuance * The region of Valencia has raised Pta4.5bn through a public auction of five year and 10 year bonds. The Pta3.5bn five year deal due December 2002 was auctioned at a spread of 15.4bp over Bonos and the Pta1.1bn 10 year transaction was auctioned at 15bp over Bonos.
  • FOLLOWING A week of relative spread stability, an improving secondary market, and several successful primary transactions, bankers are adopting a much less pessimistic attitude towards the short term future of the Eurobond market. The success of deals from the World Bank and Sweden in fixed rate dollars has improved sentiment considerably. "The market is convalescing nicely," said one banker, "and deals like World Bank and Sweden have helped that recovery a lot."
  • THE FRENCH government is planning to organise a beauty parade to select lead managers for the upcoming divestiture of its remaining 36% stake in car manufacturer Renault. The deal will raise around Ffr12bn and should be structured in a similar way to the government's last sale of Renault stock three years ago, for which BNP and Crédit Agricole were bookrunners and ABN AMRO and Lazard Frères were joint lead managers.
  • A SEMBLANCE of stability returned to the Yankee primary market this week with two issuers raising a total of $800m -- the most volume the sector has seen in weeks. Finnish paper company UPM-Kymmene Corp was able to double its planned debut to $600m, issuing $225m of 10 year notes at 110bp over Treasuries as well as $375m of 30 year bonds at 140bp via lead manager Merrill Lynch. JP Morgan also led a $200m seven year issue for UK conglomerate Rank Group Finance at 95bp over.
  • Corporates Barclays has completed the £105m five year revolving credit priced at 22.5bp over Libor for Close Brothers Ltd. The facility closed oversubscribed and has been increased to £130m ahead of signing on December 12.
  • Syndication of the $1.7bn one year revolving credit arranged for Morgan Stanley & Co International by Barclays and Chase Manhattan plc has been increased to $1.85bn. Signing is set for November 25 in London. Arranger Chase Manhattan plc and co-arrangers Barclays Bank plc, Christiania Bank og Kreditkasse and Westdeutsche Landesbank Girozentrale signed the $250m 364 day revolving credit at 20bp over Libor for Enron Corp and Enron Europe Ltd on November 14 by power of attorney.
  • * International Home Foods raised $272m through lead manager Donaldson Lufkin Jenrette this week. The firm priced the shares at $20, at the top of the pricing range of $18-$20. Some 13.6m shares were offered, of which 3m were sold by existing shareholders. Some 20% of the stock was targeted at international investors. The deal was significantly oversubscribed, with particularly strong demand reported from the US.
  • * Autonomous Region of the Azores Rating: A2