Search results for

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.

THE PRIMARY market for Hong Kong and mainland Chinese issuers stuttered back to life this with the launch of a poorly received IPO for property group Lai Fung Holdings and premarketing of China's third window company, Tianjin Development. Books for a 280m share offering by the Chinese property arm of Lai Sun Development led by Crédit Lyonnais will close today (Friday), with syndicate bankers reporting a completed book in the face of widespread market scepticism.

A $200M YANKEE issue for poultry and feed producer PT Sierad Produce, which bankers say will come to the market imminently, is expected by many to top the 911bp spread recently forced on Thailand's Advance Agro. The Sierad deal will have a similar 10 year maturity, and will be led by Deutsche Morgan Grenfell -- which commented that rumours of the deal's impending launch are premature.

WESTPAC inaugurated its second Australian asset backed CP conduit this week with an A$40m issue from Wisdom Prime Asset Trust No 1. The conduit, rated A-1+ by Standard & Poor's, will repackage Australian mortgage backed securities and corporate bonds rated at least AA-.

CITIBANK International and joint arranger African Export-Import Bank have launched syndication of a $30m three year amortising term loan at 200bp for Libor for the Central Bank of the Seychelles. The loan, the first international fund raising for the country, is to fund infrastructure projects and the expansion of Indian Ocean Tuna (IOT), a tuna processor 40% owned by the government of the Seychelles and 60% by HJ Heinz.

12083