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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  • DBS ASIA Capital's $40m IPO for Dalian Refrigeration Co is still hanging on as the B-Share market dropped to historical lows this week and the company finished its roadshow in Japan today (Friday). Analysts around the region added another challenge to the deal, saying that Dalian's price range is out of line with the market.
  • A 250m SECONDARY share offering by New York-listed Huaneng Power International (HPI) became the chief casualty of renewed volatility across Hong Kong markets this week, with the roughly $150m deal postponed by lead manager JP Morgan midway through roadshows. The failure of the H-share issue disappointed market participants, many of whom view the company as one of the strongest Chinese counters.
  • * Hungary may be the first central and eastern European sovereign to tap the Euromarkets this year, with the Baa3/BBB- rated issuer understood to have invited bids for a proposed DM500m five year floating rate note. Price talk is of a coupon level set at 50bp over DM Libor. This would represent a considerable cost saving over the last time the country tapped the Euro-DM market in April 1996 with a DM500m six year issue through its central bank, the National Bank of Hungary.
  • Market report Compiled by Gerard Perrignon, Hambros Bank Ltd, London. Tel: +44 171-865 1759
  • United States JP Morgan Securities Inc has closed a $650m facility for ACE Ltd. The loan is split into a $200m 364 day revolver, a five year $200m revolver and a seven year $250m term loan.
  • James Fenner has joined Deutsche Morgan Grenfell's syndication team in London as a senior member. Fenner will concentrate on project finance syndications, after joining the team from DMG's London project finance group. Fenner played a key role in the £518m Barking Power refinancing. He will report to Richard Munn, head of loan syndications, London.
  • RANK Group PLC finally attained its goal of issuing 10 and 20 year Yankee bonds this week, with a two tranche $200m offering led by UBS Securities and Chase. The $100m 10 year tranche came at a spread of 101bp over Treasuries, from a 100bp to 105bp price talk, while the 20 year came at a spread of 132bp from a spread talk of 130bp.
  • THE FIRST test of US investor demand for Latin corporate issues will take place in the week ahead when two Mexican corporates tap the 144a market. Newly privatised Mexican satellite company Satmex has mandated DLJ and Lehman to lead a $295m seven year debut in the 144a market, while CSFB is sole lead on a $175m seven non-call four year 144a debut by Mexico's second largest sugar producer, Grupo Azucarero Mexico (GAM). Both are on roadshow and plan to price late in the week ahead.
  • Finland Bank of Tokyo-Mitsubishi, Chase Manhattan, Commerzbank and Merita have won the mandate to arrange a DM300m seven year multicurrency revolving credit for Rautaruukki Oy.
  • * Bank Nederlandse Gemeenten Rating: Aaa/AAA
  • * European Investment Bank Rating: Aaa/AAA