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  • Double-A issuers were again the most active this week, but borrowers elsewhere were also busy. The biggest surge came from unrated borrowers which took more than a 9% share of the market. UK borrowers were active in this category. Rentokil Initial issued a ¥2bn note led by the Royal Bank of Scotland. The trade pays annual interest of 0.4% and matures in March 2005. The issuer's Eu2.5bn EuroMTN facility has outstandings of $950m from five trades and was signed in September 2001 through HSBC.
  • Amount: Eu225m Legal maturity: April 4, 2009
  • Borrowers sought value in the 10 year and over sector this week. The maturity took more than a 30% market share. Compagnie de Financement Foncier was the most prolific issuer in the greater than 10 year term, coming to market with six notes for $665m. Among these was a 10 year Eu150m trade. The FX/inflation-linked hybrid pays annual interest of 5% until March 2005. Thereafter interest is paid at 1.81% over the consumer price index (CPI) according to an undisclosed formula.
  • Guarantor: Canada Mortgage & Housing Corp Rating: Aaa/AAA/AAA
  • Citigroup/SSSB further extended its lead at the top of both tables this week. The US house was active on 26 trades in table one and 34 in table two. Goldman Sachs also put in a strong performance this week, climbing places in both tables. JP Morgan climbed from fourth to third position in table one. Among its notes was a £125m note for Danske Bank. The trade, which came off Danske's $6bn debt instrument programme, pays 4bp over three month Libor. The issue matures in September 2004.
  • It has been a week of extremes for the capital markets. After the record lows in the equity market, the declaration of war encouraged a rally and a more positive tone in the credit market. Although the equity rally began to flag, confidence is returning to the credit markets and bankers are preparing themselves for a crowded pipeline as borrowers line up to take advantage of untapped demand.
  • Compass Granada has mandated a group of 10 banks to arrange its new £1.5bn facility. They are ABN Amro, Bank of America, Barclays, Citigroup/SSSB, Danske, Dresdner Kleinwort Wasserstein, HSBC, JP Morgan, Mizuho and Royal Bank of Scotland.
  • The mandate to arrange the new Eu150m three year facility for Raiffeisenbank Croatia will be awarded imminently. Banks in the running for the mandate are Commerzbank, DZ Bank, LB Kiel, Mizuho and Sanpaolo IMI. . The borrower last tapped the market in December 2002 with a Eu25m two year term loan. Mandated arrangers were DZ Bank and Mizuho.
  • Bankers are still waiting for the award of the mandate to arrange the Eu50m-Eu80m facility for Czech Export Bank (CEB). The award is overdue and an announcement should come early next week.
  • CSFB and Merrill Lynch are neck and neck in second position in Dealogic Loanware's mandated arranger league table of mezzanine loans. This is due to their joint mandate to arrange the largest mezzanine loan ever underwritten in Europe. It is a warranted mezzanine loan supporting the secondary buy-out of gaming and casino group Gala. The tranche pays 400bp cash return and 550bp payment in kind.
  • Rating: Aaa/AAA (Moody's/Fitch) Amount: Eu500m
  • Deutsche Bank has reeled in Johnny Lee from Credit Suisse First Boston (CSFB) to become its head of corporate finance in Taiwan, and reached into the hedge fund sector to grab Steve Marvin as its new head of Korean equity research. Lee was previously a director and head of investment banking in Taiwan for CSFB, where he had worked for four years. At Deutsche Bank, he reports to Philip Crotty, the head of global corporate finance in Asia. He is based in Taipei.