Morgan Stanley launches $18m warrants on RI index<\/p>\n
HONG KONG (Reuter): Global securities firm Morgan Stanley
\nGroup Inc said it had launched 200 million warrants worth about
\nUS$18 million on the MSCI Indonesia Index.<\/p>\n
The warrants were issued in two tranches, with one and two
\nyear maturities respectively, it said in a statement issued in
\nHong Kong.<\/p>\n
Issue prices were 7.5 U.S. cents for the one-year tranche and
\n10.56 U.S. cents for the two-year tranche. The warrants will
\nmature on Jan. 24, 1997 and Jan. 23, 1998 respectively.<\/p>\n
Each warrant represents one unit of the MSCI Indonesia index
\nin Rupiah crossed into U.S. dollar at spot forex rates.<\/p>\n
The strike price is 31.09 U.S. cents, set about 10 percent in
\nthe money. The warrants are American style and are exercisable
\nfor cash settlement at any time from listing to maturity.<\/p>\n
The statement said application would be made for the warrants
\nto be listed on the Luxembourg Stock Exchange with a minimum
\ntrading and exercise size of 10,000 warrants. Settlement will be
\nmade in Euroclear and Cedel; the settlement date is Feb. 21,
\n1996. Dealing is expected to start on the following day.<\/p>\n
The one-year tranche warrants carry an all-in premium of 11.7
\npercent and gearing of 4.6 times; the two-year tranche warrants
\ncarry an all-in premium of 20.6 percent and gearing of 3.3 times.<\/p>\n
Morgan Stanley & Co International Ltd acted as lead manager
\nfor the issue.<\/p>\n
\"We anticipate particularly strong performance in the
\nIndonesian stock market this year, and we were very pleased to
\nsee broad demand from Asia and Europe for these warrants,\" Julian
\nBell, vice president of Morgan Stanley Asia Ltd, said in the
\nstatement.<\/p>\n
\"There are very few Indonesian equity warrants in existence
\nand investors responded well to the opportunity to purchase
\nleveraged exposure to the market,\" he added.<\/p>",
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