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To keep pace with the dynamic developments in Japan's increasingly innovative financial markets, regulatory change is vital. Mark B Johnson looks at changes in the law governing equity-linked transactions and warrants, regulatory support for the securitisation industry and the efforts underpinning the widespread move to book entry settlement of securities. Amendments to the Commercial Code of Japan that became effective on April 1, 2002 repealed the provisions relating to the issue of convertible bonds, replacing them with provisions relating to the issue of bonds with stock acquisition rights (shinkabu yoyakuken-tsuki shasai).

Telewest Communications is expected to reach an agreement with its lenders over a restructuring of £3.5bn in debt by the end of the week. At the end of September Telewest announced that with approval from its creditor banks it would exchange some £3.5bn in debt for 97% of equity. Existing shareholders will hold just 3% of the company. Telewest has been in negotiations with its bondholders and senior lenders over the last month.

TNK has successfully returned to the international capital markets with a $400m 11% five year transaction, nearly six months after being forced to cancel a $500m bond following a last minute audit fiasco. The transaction for the B+/B+ rated Russian oil major falls in the middle of the $300m-$500m range that joint bookrunners CSFB and Citigroup/SSSB had been marketing. It was priced at the tight end of price talk of 11%-11.25%. Merrill Lynch was joint lead manager (no books) on the transaction.

Toshikazu Funo, director in the accounting and treasury department at the Tokyo Electric Power Company talks about being content to issue bonds in the domestic market, where the company can still achieve short or long term funding at rates considerably below the international markets. What amount of debt funding have you budgeted to raise this financial year and how much have you raised so far?

Abbey National, the UK’s second largest mortgage bank, this week defied a difficult credit market by returning successfully to its Holmes master trust structure in what the issuer believes to be the largest securitisation of residential mortgages in the European market.

Abbey National, the UK’s second largest mortgage bank, this week defied a difficult credit market by returning successfully to its Holmes master trust structure in what the issuer believes to be the largest securitisation of residential mortgages in the European market.

Existing lenders to insurance company ACE Europe have responded positively to the company's £440m six year refinancing. Proceeds will be used to refinance a £440m loan signed in November 2001. Citigroup/SSSB arranged that deal with Barclays joining as an arranger and ING as a co-arranger. Lead managers were Crédit Lyonnais (£50m), National Westminster Bank (£50m), Lloyds (£35m) and ABN Amro (£30m). Pricing was not disclosed. Banks committing a similar amount to the latest facility will receive a 2bp fee and those increasing their exposure will get 5bp.

HSBC (bookrunner), Mizuho (facility), Natexis Banques Populaires (signing and publicity agent) and Standard Bank London (documentation) will launch the $150m three year term loan for ABC International Bank plc (ABC IB) into syndication today (Friday). Banks will be asked to commit $7.5m and $5m. Fees for those tickets have not been disclosed, but are thought to be 25bp and 22.5bp. The fully underwritten deal carries a margin of 35bp over Libor.

Amount: $60m, Eu5m Class A+ notes: $25m

Spanish telecoms company Auna had little difficulty in disposing of its Eu185m stake in the French internet company Wanadoo this week. The sale, led by Morgan Stanley, was completed smoothly despite Wanadoo being in the unattractive internet sector.

The New South Wales government has made WestLink Motorway consortium the preferred bidder for the A$1.5bn ($797m) Western Sydney Orbital project, the largest single road construction project ever awarded in New South Wales. WestLink will enter discussions with the Road Transport Authority with the aim of reaching financial close as soon as possible, after which construction will start. The road will be opened in 2007.

Mark B Johnson and Richard Morrow interviewed several Tokyo-based investors for their views on the domestic government, government agency and corporate bond markets.