Search results for

Liberia Chase Manhattan plc has completed a $105m 10 year revolving/term credit facility for High Tide Shipping Corporation, High Seas Maritime Inc, High Challenge Shipping Corp, High Spirit Shipping Corp and High Wind Shipping Corp.

A potentially huge new asset class was opened in the US this week as Morgan Stanley brought the first securitisation of utility stranded costs for Pacific Gas & Electric Co. Encouraged by the federal government, US states are beginning to deregulate public utilities, particularly electricity suppliers. Many electricity companies incurred costs as a result of operating as regulated monopolies, which will put them at a disadvantage against new entrants to the market. Typically these liabilities are contracts to buy power at above market rates from nuclear and renewable generators.

US and overseas investors jumped at their first chance to buy a term debt securitisation of film revenues as Chase and Bear Stearns brought a $325m deal for Steven Spielberg's new DreamWorks studio two weeks ago. Details only emerged this week about the 144A private deal. A CapMAC guarantee lent the bond a triple-A rating. It pays 22bp over three month Libor with an expected average life of 3.3 or 4.3 years.

Comptoir des Entrepreneurs launched an innovative triple-A rated funding vehicle last Friday with Ffr2.1bn of bonds split between the French domestic and Euro-French franc markets. The vehicle, Vauban Mobilisations Garanties, is the first issuer of mortgage backed securities in France registered as a company rather than a fonds commun de créances (debt mutual fund).

ABBEY NATIONAL, one of Britain's leading high street banks, broke new ground in the yen markets this week with the launch of the first dual currency Uridashi bond to offer redemption in sterling. Abbey joined a handful of international banks that have taken advantage of deregulation in the Japanese retail sector this April, and the deal allowed Abbey to diversify its investor base and beat its usual funding target.

AMID INDONESIA'S worst IPO market conditions in a decade, a government announcement to limit crude palm oil exports, and local competition from Aneka Tambang's privatisation, Astra Agro Lestari's (Astra Agro) 125.8m share IPO confounded bankers' expectations by closing two times oversubscribed on Tuesday. "It's the hardest deal I've ever done," said one syndicate official. "Anything more than once oversubscribed is strong in this market," said another.

CITICORP IS preparing an accelerated launch of a $50m to $70m credit enhanced convertible for Lite-On Technology during the first week of December, hoping to take advantage of reviving sentiment towards key sectors of Taiwan's benchmark electronics industry. Having postponed the seven year issue in late October following the government's unexpected decision to abandon active support of the Taiwanese dollar, it has been revived on the back of strong sales growth which saw the company record its largest ever monthly sales during October.

HSBC Markets brought innovation to the Hong Kong dollar debt market this week, launching the first floating rate note for a supranational borrower. The HK$1bn two year FRN for International Finance Corporation, which will be priced later today (Friday), will pay a coupon of one month Hibor less 36bp and a reoffer spread of one month Hibor less 326bp. The deal is being launched off IFC's global MTN programme and will pay 20bp in fees, split 8bp for management/underwriting and 12bp for selling.

THE JAKARTA Stock Exchange (JSE) crashed through the 400 point barrier this week, reaching a four year low. The Jakarta index has lost almost half its value since the beginning of the rupiah devaluation on July 9 when it peaked at 742.95. The JSE closed yesterday (Thursday) at 396.13. Despite the continued shake-out, and predictions that the JSE still has further to fall, Indonesian brokerage PT Makindo is pushing ahead with its 377m share IPO.

* ING Barings announced this week that its Asian chief executive Jeremy Palmer is to be re-located to London, where he will take up a new appointment as head of global corporate finance. Hong Kong-based Palmer will remain a member of the Asian regional management committee and as joint head of equities at ING until a successor is found. Palmer joined Barings Brothers in 1994 shortly before its collapse. He previously worked in the equity divisions of Salomon Brothers and JP Morgan. Following Barings' acquisition by ING Bank, Palmer became regional head of investment banking, and more recently moved into a debt origination role under his most recent title as regional CEO.

THE REVISED GDR offering from Mahanagar Telephone Nigam Ltd (MTNL) remained in the balance following the onset of formal roadshows this week, with looming political instability posing a serious threat to the $375m issue. After the cancellation of the partial privatisation of Gail (Gas Authority of India) at the end of October and the drawn-out saga that became the government's sell-down of VSNL (Videsh Sanchar Nigam Ltd), bankers commented that the Indian government was showing every sign of failing to get luck on its side for the third consecutive equity sale.

A SECOND $500m Libor/T-Bill passthrough note for the Banco Sentral ng Pilipinas (BSP) was being primed for launch by ING Barings as Euroweek went to press. Similar to the bank's recent one year passthrough deal issued in August, it provides a much needed boost to reserves at a critical juncture in the completion of the Philippines six year programme under IMF supervision.