Finance netted $700,000 annually from its borrowing and lending activities, and, unlike Aiken Industries, Finance borrowed its funds from unrelated third parties, i.e., the Euronote holders.
the Euronote holders) and another person receives money (the "financed entity," in tiffs case, NIPSCO), if the advance or receipt are effected through an intermediate entity (Finance), and there are financing transactions linking the financing entity, the intermediate entity, and the financed entity.
On October 15, 1981, Finance issued $70 million of Euronotes at 17.25% interest due in October 1988, which were guaranteed by NIPSCO.
For example, in June 1996 the City of New York issued approximately $165 million of Euronotes
in London which were U.S.-dollar denominated.
The continued rise of attractive financing alternatives in the Eurobond and Euronote markets, prompted by the removal of withholding taxes on interest payments to foreigners in mid-1984 and the sharp decline in medium- and long-term borrowing rates, was an additional factor reducing the role of syndicated bank loans as a major source of credit in international markets.
bank holding companies transferred to foreign offices several billion in funds that had apparently been borrowed earlier in the Euronote markets.
(Some of the 1985 transactions may be classified as new issues, but information necessary for such identification is not currently available.) Additional short- and intermediate-term corporate borrowing took the form of Euronote note issuance facilities and Eurocommercial paper.
corporations' drawings in the Euronote
market through Euronote
facilities (ENF's), which are shot- and medium-term note issuance arrangements operated primarily by banks.
* The A3 rating on GIB's SAR3,500 million Floating Rate Euronotes
, due 2015, issued by the bank's Saudi branch
At the same time, a wide variety of similar services are available that may be used with both domestic and foreign financial institutions, including commercial paper, collaterized bonds, commercial europaper, installment plan payments, euronotes
, American Depository Receipts (ADRs), bonds, eurobonds, and investment certificates.
"We were on our way to the great scandal of the bailout of Continental Illinois, where in effect all the money expended by the FDIC went to giant foreign depositors and anonymous holders of Euronotes
issued in tax-shelter locales like the Netherlands Antilles." An excellent marksman, Mayer squarely hits the central motivation of bureaucrats and legislators in all that was done for both banks and S&Ls in the 1980s: to help the big depositors and the big moneylenders.