Posted on 05/28/2002 8:15:38 AM PDT by NativeNewYorker
European debt capital markets seem open-minded about Iran tapping the bond markets for up to ý500m.[~$400 million]
Commerzbank said it had been appointed with BNP Paribas to lead the issue, but disclosed no details about the deal's timing, structure or the exact size.
However, analysts say the issue could attract interest from European retail investors and emerging market funds looking to diversify from Latin American debt which had been marred by Argentina's crisis.
"There is strong demand for emerging market paper other than Latin America, particularly in the European time zone," said Philip Poole, chief emerging markets economist at ING. An Iranian issue could also be supported by high oil prices.
The issue is unlikely to be marketed to US investors. No US banks competed for the mandate because of US sanctions against Iran.
"The US has taken a hard line, putting Iran on the axis of evil, but European investors are much more pragmatic and will look at the issue on its merits," one investor said.
The Europeans, who hate the US and Israel, will lend money - a lot of it - to a nation we at any minute may reduce to cinders and glass.
A two-fer in the making!
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