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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  • INDONESIA'S PT Pindo Deli Pulp and Paper sucessfully launched a $750m Yankee bond, re-opening the high yield sector for Asian credits and underlining investors' search for attractive spreads. Originally touted as $400m in size, the multi-tranche offering set a number of firsts, not least in being the largest and longest deal to date from the Indonesia's corporate sector.
  • UNION Bank of Estonia this week launched a two-pronged assault on the Euromarkets with landmark issues in the Deutschmark and dollar sectors. On Tuesday the bank issued its first subordinated debt issue, a DM30m seven year non-call two offering via Nomura which was the first rated deal out of Estonia. Last week, IBCA had assigned the bank a BB+ subordinated debt rating.
  • Corporates The finely priced £531.3m refinancing being organised for Barking Power Ltd by sole mandated arranger and underwriter Deutsche Morgan Grenfell looks set to confound its many critics.
  • * Council of Europe Social Development Fund Rating: Aa1/AAA
  • GLOBAL co-ordinators ABN AMRO Rothschild and UBS last night pulled the flotation of Dutch electronic switch gear manufacturer Holec after the offer of new and secondary stock was overwhelmingly rejected by local investors. Although bankers involved in the deal described it as a one-off, others pointed out that the deal would likely have worked six months ago; its failure illustrated the change in market sentiment.
  • Ghana BZW and NM Rothschild & Sons have quietly arranged a $70m project finance facility for the Abosso Gold project in Ghana being developed by Ranger Minerals NL.
  • THE REPUBLIC of Argentina continued to increase the size of its future jumbo euro-denominated benchmark by this week issuing a Lit750bn seven year offering fungible with its outstanding DM1.5bn of 2004s and its Asch1bn transaction, both launched earlier this year. The lira deal, jointly led by Paribas and Deutsche Morgan Grenfell, was snapped up by Italian retail investors even though the republic gave it an aggressive 9.25% coupon until 1999, thereafter stepping down to 7% .
  • BANK of America International Ltd has quietly arranged an innovatively structured Pta15.132bn project finance facility refinancing 18 of Edison Mission Energy's Spanish mini-hydro power plants. The 15 year facility, which was initially fully underwritten by Bank of America, is being raised through Mission's Iberica de Energias SA subsidiary. The deal will replace four existing project financings originally put in place in the early 1990s to fund the construction of the power plants.
  • Market commentary Compiled by Su-Lin Ong, Hambros Bank Ltd, London. Tel: +44 171-865 1759
  • China The $40m five year financing for Xiamen International Bank has closed oversubscribed to $45m but was not increased.