2012

Financial Utilities That Are Too Important To Fail

MILESTONES: US/GLOBAL By Gordon Platt Two years after Dodd-Frank became law, US regulators identified eight "systemically important" clearing and payment firms that provide critical infrastructure to the country's financial system. Systemically important financial utilities named None of the firms objected ...

DRs: Santander Mexico IPO Sets Record

CORPORATE FINANCING NEWS: GLOBAL EQUITY / DRS By Gordon Platt Santander, the eurozone’s biggest bank by market value, said it would issue up to $4.3 billion of shares in an initial public offering of up to 24.9% of its Mexican ...

Debt: Emerging Corporate Debt Grows

CORPORATE FINANCING NEWS: CORPORATE DEBT By Gordon Platt Global investors are creeping further out on thin ice to capture the higher yields available on bonds issued by companies in emerging markets (EM). Analysts caution that many of the corporate credit ...

FX: Central Banks Could Help Euro

CORPORATE FINANCING NEWS: FOREIGN EXCHANGE By Gordon Platt A favorable ruling by Germany's constitutional court on the legitimacy of the eurozone's permanent bailout fund, and coordinated easing by global central banks are both needed to ease concerns about Europe's debt ...

Project Finance and Infrastructure Providers 2012: Global Winners

By Gordon Platt FINANCIAL ADVISER: HSBC When Abu Dhabi needed a financial adviser for its latest seawater desalination and power project, Mirfa IWPP, it selected HSBC on their longstanding relationship and the bank’s reputation, without opening the contract to competitive ...

Emerging Markets Roundup: Middle East

GULF BONDS PROVIDE SHELTER FOR INVESTORS FROM CRISIS By Gordon Platt The Gulf Cooperation Council (GCC) states are enjoying enormous demand for their debt from global investors. Sukuk, or Islamic bonds, are particularly popular, in part because of their relative ...

Debt: US Hospitals Grow Their Coffers

CORPORATE FINANCING NEWS: CORPORATE DEBT By Gordon Platt Community Health Systems, one of the largest hospital companies in the US, refinanced $2.8 billion of its high-yield debt in July and August, taking advantage of low interest rates and rising investor ...

Project Finance and Infrastructure Providers 2012: Regional Winners

By Gordon Platt NORTH AMERICA FINANCIAL ADVISER: Mitsubishi UFJ Financial Group MUFG led the $585 million nonrecourse financing of the Wind Energy Transmission Texas project, and structured a $387 million construction loan for the Lone Star Transmission project, a 329-mile ...

DRs: IPO Pipeline Grows, Issuance Slows

CORPORATE FINANCING NEWS: GLOBAL EQUITY / DRS By Gordon Platt The global pipeline of initial public offerings has reached near-record levels, but IPO issuance and proceeds declined substantially in the second quarter of 2012. Deal activity declined 52% and proceeds ...

Awards: Project Finance & Infrastructure

CHANGING OF THE GUARD IN PROJECT FINANCE By Gordon Platt As public purse strings tighten, pension funds are the most promising source of long-term funding for infrastructure projects, according to an OECD report supported by Oliver Wyman. Investment funds and ...

M&A: China Seeks Global Energy Assets

CORPORATE FINANCING NEWS: MERGERS & ACQUISITIONS By Gordon Platt Canada's prime minister, Stephen Harper, returned from his second official trip to China in February and announced that Beijing would lend two giant pandas, Er Shun and Ji Li, to zoos ...

Treasury & Cash Management: Who’s Who

WHO’S WHO Global Finance’s annual list of Who’s Who in Treasury & Cash Management Bank of America Merrill Lynch Paul Simpson Head of global transaction services Paul Simpson joined Bank of America Merrill Lynch in May 2011 and now holds ...

Looking Back, Moving Forward: Foreign Exchange

CURRENCY CRISES AND CURRENCY WARS By Gordon Platt FX has withstood many crises, including speculative attacks on the British pound, the Mexican peso crisis, the Thai baht crisis and, more recently, a euro under strain and a potential threat to ...

Looking Back, Moving Forward: Derivatives

TOOLS FOR MANAGING RISK, OR WEAPONS OF MASS DESTRUCTION? By Gordon Platt As companies looked to hedge their risks, a new asset class, derivatives, was born in the 1980s. But over the years a number of substantial losses have served ...

Looking Back, Moving Forward: Equity & Debt Capital Markets

STORMY WEATHER By Gordon Platt When volume 1, number 1 of Global Finance arrived at the airport in London on October 15, 1987, it could not immediately be offloaded. The precious cargo was needed as ballast in the airplane during ...

Looking Back, Moving Forward: Mergers & Acquisitions

TRADING SIZE FOR VALUE By Gordon Platt Some of the biggest mergers in recent history—AOL and Time Warner, Vodafone and Mannesmann—show that such marriages aren't always made in heaven. Dealmakers are now staring down a much smaller deal pipeline, however, ...

GCC Regional Report: Seeking More-Inclusive Growth

SEEKING MORE-INCLUSIVE GROWTH By Gordon Platt After strong economic growth in 2011, the six nations of the Gulf Cooperation Council are spreading the wealth by putting a priority on non-oil job creation and social welfare. Photo Credit : PHILIP LANGE ...

Awards: World's Best Subcustodians 2012

NEW HORIZONS By Gordon Platt With every new regulation that hits global trust and custody banks, a new service is born for subcustodians. Keeping up is expensive and challenging, but nonetheless it is a good time to be in subcustody. ...

FX: Euro Tumbles, EU Debt Crisis Grows

CORPORATE FINANCING NEWS: FOREIGN EXCHANGE By Gordon Platt The European debt crisis remains the key focus of foreign exchange market participants, as the slowdown in the global economy increases pressure on central banks and government officials to take action to ...

M&A: Marubeni Buys US Grain Supplier

CORPORATE FINANCING NEWS: MERGERS & ACQUISITIONS By Gordon Platt Japanese trading company Marubeni placed a large bet that China's demand for imported corn will continue to grow. Marubeni will buy US grain merchant Gavilon for $5.6 billion, including $2 billion ...

Equity: Strong IPO For Malaysia’s Felda

STRONG IPO FOR MALAYSIA'S FELDA By Gordon Platt Malaysian palm-oil producer Felda Global Ventures priced its $3.1 billion initial public offering near the top of its indicative range on June 13, amid strong demand from investors, who are bullish on ...

World's Best Subcustodians 2012: Regional Winners

By Gordon Platt NORTH AMERICA Citi Lee Waite, global head of direct custody and clearing, Citi Citi's Global Transaction Services division has the largest proprietary custody network in the world, covering 61 markets and 98.5% of global market capitalization. Lee ...

Debt: Inmet Mining Funds Panama Project

CORPORATE FINANCING NEWS: CORPORATE DEBT By Gordon Platt Inmet Mining, a global mining company based in Toronto, placed $1.5 billion of senior notes in the US high-yield debt market to fund a copper-mining project in Panama, in which it holds ...

GCC regional report: Crafting A New Future

OMAN: CRAFTING A NEW FUTURE By Gordon Platt Keenly aware that its vital oil resources are dwindling, Oman has embarked on a major economic diversification program. Oman's economy has grown steadily in recent years, helped by rising oil income—owing to ...

Emerging Markets Roundup: Middle East

SOVEREIGN WEALTH FUNDS JUMP INTO THE MARKETS By Gordon Platt Middle Eastern sovereign wealth funds (SWFs) are once again dipping their toes in markets worldwide, even those that saw investments last year grow cold. Saudi power company launches landmark sukuk ...

M&A: Indonesia Delays Bank Danamon Deal

CORPORATE FINANCING NEWS: MERGERS & ACQUISITIONS By Gordon Platt Indonesia’s central bank said it will wait until new bank-ownership rules are in place to consider Singaporean banking outfit DBS Group’s $7.2 billion takeover bid for Bank Danamon Indonesia. Indonesia also ...

FX: Europe’s Crisis Deepens Euro Worry

CORPORATE FINANCING NEWS: FOREIGN EXCHANGE By Gordon Platt The euro is likely to decline against the dollar in the medium term, due to political uncertainty in Europe and weak economic conditions, analysts say. “The eurozone debt crisis is entering a ...

The Still-Seamy Underbelly Of Energy Trading

NEWSMAKERS: UNITED STATES By Gordon Platt As the tide went out for natural gas prices, it revealed that the seamy underbelly of the energy-trading business hasn’t changed a great deal since the days of Enron. McClendon ran a hedge fund ...

Emerging Markets Asset Management

SEISMIC SHIFT By Gordon Platt The emerging markets account for an ever-increasing percentage of global investable assets, and the demand for investors' services is growing commensurately. New domestic players are popping up, and global managers are partnering with local firms ...

Company to Watch: Mr Price / South Africa

RETAILER EXPANDS IN NIGERIA By Gordon Platt Mr Price Group has developed a successful retail formula in South Africa that could work well in markets across Africa. The majority of Mr Price’s 1000-plus stores are in South Africa, but it ...

Debt: EP Energy Issues Debt For Buyout

CORPORATE FINANCING NEWS: CORPORATE DEBT By Gordon Platt Houston pipeline company EP Energy sold $2.75 billion of debt in the high-yield private placement market to fund its buyout by a group of private equity firms led by Apollo Global Management ...

EM News: Building Frontier Markets Access

EMERGING MARKETS INVESTOR: NEWS By Gordon Platt The development of new frontier indexes in both the fixed-income and equity markets is making it easier for institutional investors to trade often risky and illiquid securities out of just-developing markets. MSCI introduced ...

DRs: DR Capital Raising Falls Sharply

CORPORATE FINANCING NEWS: GLOBAL EQUITY / DRS By Gordon Platt Investor caution and market-specific issues, such as the presidential election in Russia, put a damper on equity capital raised in the form of depositary receipts in the first quarter of ...

Danish Banks Fire Moody’s For “Business Reasons”

MILESTONES: DENMARK By Gordon Platt Moody’s Investors Service says something is rotten in Denmark’s mortgage industry. The country’s banks are still issuing interest-only loans, years after the real-estate bubble burst. Copenhagen still home to interest-free mortgages Meanwhile, Denmark’s household debt ...

Debt: Bond Market Rally Continues

CORPORATE FINANCING NEWS: CORPORATE DEBT By Gordon Platt Federal Reserve chairman Ben Bernanke said recently that improvements in the US labor market might not be sustained because of weak economic growth and signaled that the Fed was likely to keep ...

FX: Dollar Favored Over Euro, Yen

CORPORATE FINANCING NEWS: FOREIGN EXCHANGE By Gordon Platt The dollar rose sharply last month after the Federal Open Market Committee’s meeting in March signaled that further monetary easing is unlikely unless the US economy slows significantly or the inflation rate ...

World’s Best Banks 2012: Africa

By Thomas Clouse, Jonathan Gregson, Antonio Guerrero & Gordon Platt AFRICA Not only is Africa rich in natural resources, but it also offers the promise of fast economic growth in a number of countries, and a population lacking basic banking ...

World’s Best Banks 2012: Middle East

By Thomas Clouse, Jonathan Gregson, Antonio Guerrero & Gordon Platt MIDDLE EAST The oil-exporting countries of the Middle East are enjoying strong economic growth, whereas countries that experienced political uprisings during the Arab Spring of 2011 are struggling to get ...

Company to Watch: ŞIŞECAM / Turkey

TURKEY’S LEADING GLASSMAKER EXPANDS ABROAD By Gordon Platt Glassmaker Şişecam has a near monopoly on the glass market in Turkey, where it operates a chain of retail outlets for its Paşabahçe brand of glassware, and where its flat-glass output benefits ...

World’s Best Banks 2012: Asia

By Thomas Clouse, Jonathan Gregson, Antonio Guerrero & Gordon Platt ASIA Asia has provided one of the few bright spots in the global economy in recent years. The region rebounded quickly from the global financial crisis and has thus far ...

World’s Best Banks 2012: North America

By Thomas Clouse, Jonathan Gregson, Antonio Guerrero & Gordon Platt NORTH AMERICA North America’s banks are well along the road to recovery from the financial crisis, amid signs of improvement in the US and Canadian economies. The Federal Deposit Insurance ...