International Bond Market Roundup

Malta Independent Sunday, 19 September 2010, 00:00 Last update: about 14 years ago

France

France has sold €164.97 billion of bonds so far this year after auctioning €10.27 billion of regular and index-linked bonds on Thursday, according to data from Agence France Tresor. The country has raised 88 per cent of its funding programme for this year, compared with 84 per cent during the same period in 2009, the debt agency said in a note sent by e-mail.

Hertz

Hertz Global Holdings Inc., the world’s biggest rental car company, plans to sell US$300 million of eight-year notes through its Hertz Corp. unit. Proceeds may be used to fund a portion of the cash consideration for the purchase of Tulsa, Oklahoma-based Dollar Thrifty Automotive Group Inc., and for general corporate purposes, Hertz said.

Independencia SA

Debt from Independencia SA, the Brazilian beef producer whose creditors include JPMorgan Chase & Co. and Citigroup Inc., is sinking due to concern that the company may default for the second time in two years. Prices on the Cajamar, Sao Paulo-based company’s US$165 million of notes due in 2015 plunged 24 cents on the dollar since 11 August to 56 cents, according to Trace, the bond price- reporting system of the Financial Industry Regulatory Authority. The drop shows it’s “very likely” Independencia will miss an interest payment of about US$12 million due 30 September, said Eric Ollom, chief emerging-markets strategist with Jefferies & Co.

Poland and the Czech Republic

Poland and the Czech Republic’s debt ratings may face “upward pressure” as their economies strengthen, Moody’s Investors Service said. A change isn’t imminent, the rating company said. “As regards Poland and the Czech Republic, if things continue to improve there may be, in the future, some upward pressure on the ratings,” Dietmar Hornung, a senior credit analyst at Moody’s said on Thursday. “However, at present the rating outlook for both ratings is stable, meaning that for the foreseeable future we do not see any rating changes.” Poland has an A2 rating from Moody’s, five steps below the top Aaa grade. The Czech Republic is rated one grade higher at A1.

Wind Hellas

Egyptian billionaire Naguib Sawiris made a binding offer to buy Wind Hellas Telecommunications SA after the company was put up for sale when it failed to make debt payments. The bid from Sawiris includes a fresh cash component and a partial debt-for-equity swap, with creditors giving up some of their claims in exchange for shares in a restructured company. A group of senior bondholders in the third-biggest Greek mobile company is also seeking control of the company. Binding bids for the company were due 15 September. Other potential bidders for the company included Telenor ASA, the Nordic region’s largest phone company, and Los Angeles-based investment firm Saban Capital Group Inc. Info-Quest SA, Greece’s biggest computer maker, and On Telecoms also expressed interest in buying the company, which has its main operating unit in Athens.

Data compiled by MPM Capital Investments Ltd of 81, B. Bontadini Street, Birkirkara. MPM Capital Investments Ltd is licensed to conduct investment services business by the Malta Financial Services Authority. MPM can be contacted on [email protected] or by calling 2149 3250.