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In a spectacular week for the financial institutions market, three of Europe’s largest banks priced Eu3.1bn in fixed rate lower tier two debt inside two days, moving the market a mere 4bp.

In a spectacular week for the financial institutions market, three of Europe’s largest banks priced Eu3.1bn in fixed rate lower tier two debt inside two days, moving the market a mere 4bp.

Mandated arrangers ABN Amro, Bank Austria Creditanstalt and KBC/K&H Bank have signed banks into the Eu130m seven year facility for the Municipality of Budapest. The deal was oversubscribed to Eu162m, but has not been increased. The mandated arrangers joined for takes of Eu12m apiece. Banca OPI, Landesbank Baden-Württemberg, Landesbank Rheinland-Pfalz, NordLB and Postabank és Takarékpenztár joined as arrangers for takes of Eu12m. Baden-Württembergische Bank joined as a lead manager for a ticket of Eu8m. Banque et Caisse de l'Etat Luxembourg, Deutsche Postbank and CIB Bank joined as managers for takes of Eu5m each and Banca Monte dei Paschi di Siena also came in as a manager for a take of Eu2m. The deal paid a margin of 24bp over Libor and 25bp thereafter. Repayments will be made in 10 equal semi-annual instalments 30 months after the deal is signed.

Mandated arranger BayernLB has signed banks into the Eu10m three year club multi-currency bullet term loan for SP-Fjármögnun. The deal has been oversubscribed and increased to Eu16m. Bunadarbanki International, Hamburgische Landesbank, Raiffeisenlandesbank Niederösterreich-Wien, Sparebanken Oest, WGZ-Bank and Kaupthing Bank joined as participants. Proceeds will be used for general financing. The borrower is a leasing company which is 50% owned by the Icelandic Banking Association.

ABN Amro and Bank of Baroda have received formal applications from two banks for the $50m five year fundraising for LIC Housing Finance. More banks will confirm their participation in the next one to two weeks before the deal closes. Bharti Cellular's $125m six year credit arranged by ABN Amro, Development Bank of Singapore, Standard Chartered Bank and WestLB has attracted a number of firm commitments in general syndication. The arrangers are waiting on a handful of banks before formally closing the deal in the next couple of weeks.

Banks will be signed into the Eu500m three year term loan for building society EBS today (Friday). The credit was closed heavily oversubscribed and was increased from an initial launch figure of Eu250m.

Banks invited into the initial stage of underwriting for Benetton's jumbo Eu10bn acquisition financing recognise that Benetton is a premier name, but are concerned that the deal's long tenor will scare off retail investors. "Placing jumbo amounts of five year investment grade paper has proven tough this year. Asking the bank market to buy Eu10bn of 12 year paper is very ambitious," said one banker.

The Republic of Italy this week relaunched itself in the asset backed market with a Eu6.6bn equivalent securitisation of real estate assets. Lead managed by ABN Amro, Banca Nazionale del Lavoro, Citigroup/SSSB and JP Morgan, Società Cartolarizzazione Imm-obili Pubblici Srl (SCIP), which securitises residential and commercial real estate disposal proceeds, is a groundbreaking deal for the republic.

Deutsche Bank will close syndication of the 12 month extension of the $100m one year facility from December 2001 for Kazkommertsbank next week. The deal will be signed soon afterwards. Many of the 24 existing lenders have recommitted to the extension and a number of new lenders have also joined the deal.

Guarantor: Kazkommertzbank OAO Rating: Ba2/B/BB-

Rating: Aaa/AAA Tranche 1: A$100m