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A shortlist of up to 15 banks is being drawn up to bid on the debt financing for the Baku-Tiblisi-Ceyhan (BTC) pipeline project. Financial adviser on the pipeline, Lazard, has sought firm expressions of interest from banks on the $1.6bn project - particularly with respect to underwriting appetite.

UBS Warburg told EuroWeek yesterday (Thursday) that it had managed to sell the largest block trade in the financial sector for 10 years and produced Eu2.8bn of league table business out of a Eu1.8bn sale of Fortis stock by Suez (see story above). Suez had sold UBS Warburg 120m shares in Fortis, of which 50m was placed as a block trade and 70m used as underlying stock for a mandatory convertible. But UBS Warburg increased the 50m block by 56m shares to create a delta hedge for accounts buying into the Eu1.19bn mandatory.

Brazilian private sector issuers continued to expand maturity and squeeze yields this week with banks Unibanco and Votorantim looking to price bonds at tightest-yet levels. Unibanco is self-leading a minimum $50m 18 month issue, its longest tenor this year, at yield talk of 5.75%-6.00%, well inside the 6.5% yield Banespa achieved just last week on its 18 month note.

Amount: Eu2.2bn Legal maturity: October 28, 2027

Amount: Eu79.36m Rating: Aaa/AAA

Guarantor: Volvo AB Rating: A3

Trades in the one to three year tenor were once again the market's most popular this week as investors chose to keep their cash in the short end. The over ten year maturity was also strong but many of these trades were callable after a year. Despite a fall in demand over the last seven days for euros, the currency was by far the most popular in the one to three year term, taking a 67% market share with over $1.33bn traded. However, only 15 notes were issued in euros in this tenor, against 18 for just $232m in yen. UK borrowers were prevalent in euros with two financials issuing the market's greatest volumes in this tenor. Abbey National led the field with two Eu210m notes. One of these was a trade led by Morgan Stanley that pays a coupon of 2bp over three month Euribor and matures in April 2005.

Double-A names dropped away a little this week but still lead the ratings groups, with 40% of the market. Triple and single-A credits climbed at their expense, taking a 26% and 24% share respectively. Automotives were busy among the single-A issuers, launching 12 notes for upwards of $425m. General Motors Acceptance Corp (Australia) was the most active here. Its largest trade was a ¥2.6bn note that matures in May 2005.The issue came off the borrower's Eu50bn EuroMTN facility. On the triple-A side Norwegian issuers were the busiest, coming with 20 notes. This rested on trades from two borrowers - Kommunalbanken and Eksportfinans. Kommunalbanken issued three trades over the ¥1bn mark, the largest a ¥2bn note that goes out 25 years.

RZB has the mandate for the loan market debut of Municipal Bank plc. The Eu5m term loan has a two year maturity with a 12 month extension option. The deal pays a margin of 350bp. A small scale syndication will get under way in early May.

Rating: A1/A+ Amount: Eu1.1bn

Rating: Aaa/AAA Amount: Sfr100m

Shanghai World Trade City Corp is tapping the market for a $150m seven year amortising financing through arranger HSBC. Arrangers pledging $15m or more gain 130bp all-in for an average life of 5.4 years, co-arrangers taking $10m-$14m earn 128bp, senior managers absorbing $5m-$9m receive 126bp and managers with tickets of $2m-$4m will be paid 124bp.