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Bankers registered optimism this week for the prospects of EuroMTN activity in spite of a drop in trading volumes. Factors such as the end of the war in Iraq, the beginning of the new fiscal year in Japan last month and an upturn in US consumer confidence are creating a positive tone in the market. More immeditately, Golden Week in Japan, May Day in Europe and the coming Bank Holiday in the UK have combined to limit EuroMTN issuance. One banker said he had printed less than half his normal number of trades over the last few days.

Morgan Stanley raised $75m for Dutch semiconductor equipment maker ASM International on Monday through an overnight convertible. The bond will allow ASM International to repay short term debt and take advantage of an improvement in sentiment in the technology sector over the past few months to strengthen its balance sheet.

Do those increasing number of rich lists leave you intellectually poorer and just slightly frustrated? The headline, "Harry Potter is richer than the Queen", is eye-catching but is no more accurate than the classic in the Sun newspaper many years ago with an aggrieved member of the working class claiming "Freddie Starr ate my hamster". The present senior members of the Royal Family would, if they were a football team, be playing in the fourth division on their recent performance and in danger of relegation to the non-league Conference.

Rating: A3/BBB+/A- Amount: $500m subordinated debt

Banks are bidding for the arranging mandate for a new facility for Bank of Bahrain&Kuwait. The bank announced earlier this year that it will seek up to $200m in funding from the loans market this year. The borrower last tapped the market in September 2001 with a $100m three year loan paying 50bp.

Arrangers Bank of America (Australia), National Australia Bank, RBS Australia and WestLB (Sydney) have closed the A$1.25bn 15 year fundraising for Westlink Motorway Partnership. The deal was oversubscribed with a further nine banks committing to the facility. As a result, a general syndication is not needed.

Norwegian telecoms operator Telenor on Wednesday sold half of its 18% stake in Greek telco Cosmote Mobile Tele-communications through a Citigroup-led accelerated bookbuild. The Eu272m placing comprised 29.7m shares priced at Eu9.16 at a tight 1.7% discount to the previous close. Telenor retains a 9% stake which is locked up for the next six months.

Petrobras will test the depth of demand for structured deals out of Brazil in the weeks ahead with a $500m-$750m asset backed offering, most of which will not carry a triple-A wrap from a monoline insurer. The deal, led by Citigroup and BBVA, is on roadshow in the US and will consist of two tranches, one wrapped by MBIA and one unwrapped.

Bids were due earlier this week for the $200m loan deal for Philippine National Oil Corp that will be guaranteed by the Republic of the Philippines. Bankers say the borrower was looking for a three or five year financing.

Swap spreads continued to tighten across all markets this week against a background punctuated by European and Asian holidays and characterised by low issuance levels. Although there are more holidays next week, corporate issuance is expected to pick up with several houses talking of imminent mandates. Deutsche Börse, rated Aa1/AA+, has appointed Deutsche Bank, Dresdner Kleinwort Wasserstein (DrKW) and Goldman Sachs as lead managers of a May 2008 inaugural euro benchmark bond. Launch of the Eu750m-Eu1bn bond is expected after a pan-European roadshow starting next week. Unofficial price talk is in the mid-swaps plus 15bp area.

After a few bumps along the way, senior syndication on the Eu400m five year revolver for TPSA is close to being wrapped up with up to eight sub-underwriters on board. Mandated arrangers ABN Amro, Citigroup and SG invited banks at this level to join with takes of Eu50m for 15bp sub-underwriting, and 45bp up-front on a Eu30m final hold.

Bank of Tokyo-Mitsubishi and Nedship have the mandate to arrange a $236m loan for P&O Nedlloyd. The UK-based company last tapped the market when it mandated Citigroup to arrange a $225m nine year term loan in December 2001. The deal paid a margin of 125bp over Libor and paid a 43.73bp commitment fee.