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Ascendas Real Estate Investment Trust (A-Reit) closed its initial public offering this week more than five times covered and raised S$239.8m. The popularity of the IPO has led bankers to hope the Singapore Reit sector will move into the mainstream of Singapore's capital markets.

Bank Negara Indonesia (BNI) and Metropolitan Bank and Trust (Metrobank) overcame market detractors and terrorism fears with two sub-investment grade subordinated bonds this week. The lower tier two transactions were targeted to take advantage of private bank demand for high yield emerging market paper following the reduction in US interest rates.

Westpac and Commonwealth Bank of America this week launched the second securitisation for Australian non-conforming lender Bluestone Group. Non-conforming mortgages are a new feature in the Australian market, and Bluestone was founded as recently as 2000, with warehouse funding from Nomura and Barclays. Its first securitisation was a A$130m issue in April 2002.

China The Hainan Meilan Airport IPO was this week was priced at almost the top end of the range after receiving orders for 10 times the stock on offer.

Despite the distractions of a new ¥30bn five year Samurai bond issue, Korea Electric Power Corp (Kepco) finally unveiled its long awaited restructuring of its outstanding bond guarantee profile. The new guarantees are part of Kepco's aim to privatise six wholly owned generation companies (gencos) that were spun off from the power utility in April 2001.

Tenaga Nasional and Taiwan's Chunghwa Picture Tubes completed convertible bond issues this week and Wintek yesterday (Thursday) completed the first GDR issue for a Taiwanese issuer since May. Tenaga's $300m offering was increased to $350m. Investors were attracted by the deal's terms and the rare opportunity to pick up equity-linked paper from one of Malaysia's largest blue chip firms.

Malaysia's Affin Bank last week launched what it claimed was the world's first primary market CLO. Essentially a club funding vehicle secured on newly issued unsecured commercial loans rather than bonds or mortgages, Aegis One Bhd raised M$1bn for 25 small to medium sized corporates. The M$900m senior notes, rated triple-A by Malaysian Rating Corp (MARC), were priced at 5.2%. The bonds were privately placed with Malaysian investors, primarily banks and fund managers. A M$100m junior tranche, rated double-B and with an undisclosed coupon, was also sold. Both tranches are bullets with maturity in November 2007.

Malaysia Moody's followed its counterpart Fitch by rating RHB Bank's proposed subordinated bond issue at Baa2, one notch below its Baa1 senior debt rating. The agency's rating gives the go-ahead for the Malaysian bank's new $200m 10 year non-call five deal, which is being managed by ABN Amro.

The European markets lost another famous name late last week when Charles, Lord Hambro, the last family chairman of his family's bank, died aged 72. He was chairman of the bank for 25 years until 1997. Hambro was made a life peer in 1994 after becoming treasurer of the Conservative Party, which he rescued from the financial mess it found itself in after the 1992 general election.

Commentary

UFJ International has arranged an $800m EuroMTN programme for Teijin Holdings Netherlands. The arranger is joined on the dealer panel by ABN Amro, BNP Paribas, Citigroup/SSSB, JP Morgan, Merrill Lynch, Mizuho, Nomura, Norinchukin Bank and Tokyo-Mitsubishi. The first trade off the programme has already been placed by UFJ. The ¥8.5bn note matures on January 27, 2006.

Guarantor: Municipal Guarantee Bond (Kuntien Takauskeskus) Rating: Aaa/AA+