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Fortis Investment Management is starting an emerging markets collateralized bond obligation program. The firm has decided to create this new line of business to build off of its first emerging market CBO launched late last year and to capitalize on the excellent returns proffered by emerging market sovereign debt lately, says Raphael Marechal, senior emerging market fund manager in Paris. The firm plans to bring another deal this year, but will wait until there are good arbitrage opportunities in the market.

London-based Henderson Global Investors is warehousing leveraged loans for its first collateralized loan obligation. Dominic Powell, director of fixed interest and credit, said the firm is focusing on leveraged loans because the asset class is stable and one of the firm's core competencies. The deal is called Aquilae and will be about EUR 300 million. Goldman Sachs is underwriting the deal. European managers are increasingly turning to CLOs after the poor performance of bonds have made it virtually impossible to issue a CBO (LMW, 11/18).

Westmoreland Capital Management is prepping its first ever collateralized debt obligation. It should price in the first quarter, according to a CDO market participant. The firm is a brand new CDO shop based in Richmond, Va. It was created last year by several senior CDO bankers from J.P. Morgan Securities, Prudential Securities and First Union Capital Markets. Carter Rise, founding partner, reached at the firm's New York office, declined to comment.

WestLB has offered Reliant Resources a three-month extension on its chunk of the Houston power player's $2.9 billion bridge facility that matures Feb. 19-a move characterized by bankers as unusual and perhaps divisive given that the bank isn't a lead on the deal. One lender says the move suggests a breaking of ranks between the agent banks that are conducting negotiations with Reliant and more junior members of the lending syndicate. WestLB officials declined comment and PFR was unable to discover the German bank's exposure to the deal.

Japan Ford's Japanese captive finance company Primus Financial Services is returning to the market in February with a ¥61bn securitisation of auto loan receivables. Nikko Salomon Smith Barney is arranging the deal.

Snowy Hydro and Citipower are planning to kick start the Australian corporate bond pipeline for 2003. The two power utility companies are looking at wrapped transactions before the end of February, continuing the trend of issuance that dominated the market last year.

Universal Robina is planning to launch a $150m five year transaction next week. This will be the first Asian corporate high yield bond this year. The Philippines food manufacturer has hired Citigroup/SSB and ING as joint lead managers for the Reg S transaction. It will start its international roadshow in Manila today (Friday).

Shares in Westfield Holdings jumped more than 5% yesterday (Thursday) on news that a US arm of Westfield is part of a consortium bidding for another US shopping centre operator. If the deal goes ahead, it could lead to the year's first jumbo equity issue from Australia. The offering, which could be as big as A$1bn, will be joint lead managed by Deutsche Bank and UBS Warburg.

Hong Kong The UK's Abbey National sold a block of 13.5m shares in medium sized Hong Kong bank Dah Sing Financial Holdings.

The first test in 2003 of investor interest in Korean paper should emerge next week when Korea Hydro and Nuclear Power (KHNP) roadshows a $200m-$250m bond issue. KHNP began the roadshow in Hong Kong yesterday (Thursday) and is speaking with investors in Singapore today (Friday), before moving to Frankfurt on Monday and London on Tuesday. It should launch the five year Reg S deal by late next week.

Rating: Aa3/AA-/AA- Amount: Eu250m

Oversea-Chinese Banking Corp (OCBC) debuted in the tier one market with a S$500m non-call five year hybrid preference share issue this week. Poor equity market performance and a lack of recent domestic bonds meant that investors flocked to the deal. This enabled joint lead managers OCBC and JP Morgan to increase the deal from S$300m.