Search results for

Q: The defining features of all European currency bond markets in the last few months have been the low levels of interest rates and investors' attempts to lift their returns by yield-curve plays or by taking greater credit risk. How important do you expect those trends to be in the French franc capital markets for the rest of this year?

Deutsche Telekom is set to launch its long awaited debut Eurobond in two weeks, with a DM2bn deal that will set a benchmark for corporates in the Deutschmark sector, and then in the euro sector from January 1999. The telco will add further liquidity to the burgeoning corporate sector in core European currencies, the most notable recent examples being Telstra's DM2bn transaction and Allianz's Deutschmark and French franc parallel bond.

Czech Republic ING Barings has won the mandate to arrange the coveted Ck3.5bn ($105m) credit for the City of Prague. The award marks the end of a tough bidding process in which over 20 banks were involved.

WITH central and European credit risks at their highest for 18 months, loan syndication teams in commercial and investment banks are looking for more support and security.

ALTHOUGH THE CZECH REPUBLIC suffered a number of setbacks in 1997 - most notably the enforced devaluation of the Czech koruna at the end of May and severe flooding in June and July - Czech credits remain among the most popular in the international bond markets.

Argentina * Banco Mayo Cooperativo Limitado

THE PORTUGUESE privatisation programme moved up a gear this week when the government launched the sale of all but 10% of its stake in Cimpor, the cement producer floated last year by lead managers Morgan Stanley Dean Witter and BPI. The IPO was one of the most successful offerings from Portugal in 1997 and the two firms have been mandated for the new deal, which will be targeted at local and foreign investors. There will be a small tranche for domestic retail, who will be offered stock at a slight discount to institutions.

Outside events seemed to be diverting the attention of many market professionals towards the end of the week. The long weekend will tee off for many today (Friday) with holidays in most of Europe. It will give some the opportunity to ponder the outcome of the EU meeting at which members of the single currency will be confirmed and euro conversion rates will be set.

France's blue chips are rewriting the unwritten laws of how the country functions through a series of transactions to unwind long-standing relationships and dispose of peripheral assets.

The sudden outbreak of weakness in Germany's DAX stockmarket index this week is unlikely to disrupt the flow of primary market deals, with a number of flotations of small to mid-cap companies due in the coming weeks. In addition, the slew of capital increases from major German corporates is continuing, with Mannesmann and Daimler-Benz scheduled to begin their long-awaited rights offerings shortly.

BLESSED WITH AN ABUNDANCE OF HYDRO-carbon and mineral resources which have earned it the epithet of 'The Second Kuwait', Kazakhstan has emerged as the leading economic force in central Asia.

The Greek government is taking advantage of buoyant domestic stockmarket conditions to hurry along its privatisation programme, divesting minority stakes in a number of industrial and financial groups. This week the government sold a 3.3% stake in national telecom carrier OTE to raise $400m in the largest bought deal yet seen in the Greek market. The stake was sold to Credit Suisse Boston and Salomon Smith Barney, with the process being co-ordinated by domestic lead manager National Bank of Greece.