case study
COUNTRY RISK ANALYSIS 2014-15
Republic of Solvencia and the International Capital Markets
SOLVENCIA’s Eurobond Request to CASINO Bank
www.developingfinance.org
Auteur(s) : Dr. Michel Henry BOUCHET, Distinguished Finance Professor, Global Finance
Center & North Sea Global Equity Management
Etablissement : SKEMA Business School
© SKEMA 2013- CCMP-2008 Country Risk Analysis : Solvencia & Casino Bank- Bouchet Michel-H, Global
Finance Center
SOLVENCIA
Country Risk Case Study
© CCMP-2008 Country Risk Analysis : Solvencia & Casino Bank- Bouchet Michel-H, CERAM Global Finance
Center
TABLE of Contents
1. Case Presentation and Introduction- Pedagogical support note 2. Country risk case study: Solvencia and Casino Bank
3. Excel spreadsheet
4. Annex: questions and answers regarding international bond issue and country risk
5. Case correction 1: Final Country Risk Report
6. Case Correction 2: Excel spreadsheets, ratio calculations, liquidity and solvency indicators, and graphs
7. Powerpoint-based case correction
8. Further readings and bibliography
© Skema 2013- CCMP – 2008- Solvencia : Country risk case study – Michel Henry Bouchet - Global
Finance Center
Republic of Solvencia and Global Capital Markets:
Eurobond Request to Casino Bank
Fall 2014
Introduction
It was 9 o’clock yesterday morning, when your secretary passed an important telex from
Solvencia’s Finance Minister, requesting an urgent meeting next week in Monaco. It was not too difficult for you to guess the purpose of the meeting given that it might well stem from the country’s plan to launch €500 million - €700 million Eurobond on international capital markets.
Mr. Solvent, the finance minister wants to get your assessment regarding market conditions for the bond floating, in order to compare with your competitors’ offers in London, Zurich and New York.
The US subprime crisis environment and its spill-over effect, and the protracted credit crunch,
Republic of Solvencia and the International Capital Markets
SOLVENCIA’s Eurobond Request to CASINO Bank
www.developingfinance.org
Auteur(s) : Dr. Michel Henry BOUCHET, Distinguished Finance Professor, Global Finance
Center & North Sea Global Equity Management
Etablissement : SKEMA Business School
© SKEMA 2013- CCMP-2008 Country Risk Analysis : Solvencia & Casino Bank- Bouchet Michel-H, Global
Finance Center
SOLVENCIA
Country Risk Case Study
© CCMP-2008 Country Risk Analysis : Solvencia & Casino Bank- Bouchet Michel-H, CERAM Global Finance
Center
TABLE of Contents
1. Case Presentation and Introduction- Pedagogical support note 2. Country risk case study: Solvencia and Casino Bank
3. Excel spreadsheet
4. Annex: questions and answers regarding international bond issue and country risk
5. Case correction 1: Final Country Risk Report
6. Case Correction 2: Excel spreadsheets, ratio calculations, liquidity and solvency indicators, and graphs
7. Powerpoint-based case correction
8. Further readings and bibliography
© Skema 2013- CCMP – 2008- Solvencia : Country risk case study – Michel Henry Bouchet - Global
Finance Center
Republic of Solvencia and Global Capital Markets:
Eurobond Request to Casino Bank
Fall 2014
Introduction
It was 9 o’clock yesterday morning, when your secretary passed an important telex from
Solvencia’s Finance Minister, requesting an urgent meeting next week in Monaco. It was not too difficult for you to guess the purpose of the meeting given that it might well stem from the country’s plan to launch €500 million - €700 million Eurobond on international capital markets.
Mr. Solvent, the finance minister wants to get your assessment regarding market conditions for the bond floating, in order to compare with your competitors’ offers in London, Zurich and New York.
The US subprime crisis environment and its spill-over effect, and the protracted credit crunch,