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Compiled by Holger Kron Deutsche Bank, Frankfurt

Compiled by Holger Kron Deutsche Bank, Frankfurt

Dollar trading was the big winner this week, with 161 trades issued for $2.88bn. While French and UK borrowers were active as usual, Swedish issuers were surprisingly the most active. Nordea Bank Norge closed a $100m two year note via Merrill Lynch. The trade pays interest of 2bp over three month Libor. Spintab closed the most volume with a $200m note and a $150m trade. Citigroup/SSSB was the lead dealer on the larger transaction.

Three more euro trades were issued this week than last week, but volumes dipped with $1.8bn less than the previous week. Five trades were closed from the auto sector, reflecting its busy start to 2003. Most prominent was Banque PSA Finance, which issued a Eu100m two year deal. The note pays a coupon of 20.5bp over six month Euribor and was led by DZ Bank. Also active in the auto sector was BMW Coordination Centre. The borrower issued a Eu42m one year trade. The note carries a coupon of 2.72%.

MTN trading was up on last week with 392 trades closed, 50 more than the previous week. Demand for yen was strong, with 100 notes issued for $1.16bn. GMAC International Finance's ¥10bn three year trade was the joint largest. It was placed by Citigroup/SSSB. New South Wales Treasury Corp matched GMAC's ¥10bn trade with a 10 year note. It also issued ¥1.2bn and ¥500m notes. The smaller trade is an FX/capped currency-linked hybrid with annual interest of 3% until January 27, 2004. Thereafter interest is linked to the yen/dollar exchange rate. Tokyo-Mitsubishi International was the bookrunner.

Freddie Mac’s resolution to promote secondary bond performance in 2003 paid dividends this week when the agency shrugged off accounting problems to price what several bankers called its best euro deal yet.

Allgemeine Hypothekenbank Rheinboden (AHBR) ended January on a downbeat note, with the postponement of a planned Eu1bn Hypothekenpfandbrief. AHBR delayed the transaction on Tuesday, blaming political uncertainty and unfavourable market conditions. However, some observers were sceptical about AHBR citing such general reasons, as the Pfandbrief market witnessed two successful deals this week.

Russian pharmacy chain 36.6 surprised the market this week when it completed its $14.4m IPO, Europe's first of the year, just one week after the deal was postponed. The company was forced to accept a lower price for its shares in exchange for a listing in Moscow and a much needed injection of capital.

Rating: Baa1/BBB/BBB+ Amount: Eu100m (fungible with two issues totalling Eu350m issue launched 29/11/02 and 15/01/03)

The recipients of the mandate to arrange the Eu1bn five year facility for Sociedade Nacional de Combustiveis (Sonangol) have still not been confirmed. A verbal mandate has been promised to BNP Paribas, SG, Natexis Banques Populaires and Banque Belgolaise. One banker told EuroWeek that the borrower is in no rush and so it may be some time before an official announcement is made.

Rating: A1/A+ Tranche 1: Eu500m lower tier two capital

ANZ Banking Group found the market receptive enough to issue a two tranche lower tier two transaction for Eu500m and $550m even as tumbling equity prices forced spreads in the financials sector wider this week. "ANZ is one of the top picks in the Australian market," one lead manager told EuroWeek. "Investors love the fact that it concentrates on its home market and consequently it was one of the few issuers to be able to close a deal during this volatile period, particularly with war in Iraq pending."