By Joanna Chung and Lina Saigol in London
Widespread jitters in the credit markets and rising risk-aversion among investors have scuppered bond deals planned by several companies this week.
MISC on Wednesday became the first company in Asia to pull its planned bond issue, citing the volatile market conditions sweeping the corporate credit markets in the wake of worries of about the potential fallout from the US subprime mortgages.
MISC on Wednesday became the first company in Asia to pull its planned bond issue, citing the volatile market conditions sweeping the corporate credit markets in the wake of worries of about the potential fallout from the US subprime mortgages.
Meanwhile, steelmaker Arcelor Mittal, a potentially major issuer in Europe, decided against proceeding with its inaugural post-merger transaction of a two-part benchmark eurobond sale for similar reasons earlier this week.
Arcelor Finance, the main finance vehicle for the group, had planned to sell €1.5bn worth of bonds, consisting of a five and a 10-year tranche and guidance had been set on Monday.
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Source: http://www.ft.com/cms/s/15ca112a-24d3-11dc-bf47-000b5df10621.htm |
