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Citigroup/SSSB is set to arrange the first EuroMTN programme from Central America since 2000. The new $750m multi-currency facility is for Central American Bank for Economic Integration (CABEI). A treasury official at CABEI told EuroWeek that the programme is still in its initial phase and that it is difficult to forecast an exact signing date. However, the official did expect the programme to be ready by early next year.

China Telecom officially priced its revised and reduced IPO at HK$1.48 yesterday (Thursday). That was the bottom end of the price range, despite the deal having been slashed from a maximum 17.3bn shares to 8.69bn, including the greenshoe option. Although officials said the book was "more than covered", the deal was widely viewed as a flop - or mediocre at best. One head of syndicate described it as "a case study in how it can all go wrong". Another described the lack of institutional participation as giving a "Pyrrhic victory at best".

Rating: Aa1/AA-/AA+ Amount: Eu1.75bn

Deutsche Bank's Eu141m placement of stock in German tyre company Continental on Tuesday boosted the bank to the top of the European bookrunner league tables. Deutsche's equity syndicate desk has benefited from the benevolence of its parent in the past weeks as it looks to take advantage of the recent equity market rally to continue its asset disposal programme. This week's sale, which represents Deutsche Bank's entire 7.5% stake in Continental, follows the bank's sale of its remaining 9.3% stake in Deutsche Börse in October.

Guarantor: Small Business Corporation Amount: $350m

The rally in international bond markets, inspired by a 50bp cut in the Fed Funds rate to a new 40 year low of 1.25%, quickly foundered yesterday (Thursday) as equity markets nose-dived, with the Dow Jones losing 2.11% on the day to close at 8,586.24. And hopes that the UK and Europe would follow the US were dashed as the ECB and the Bank of England kept rates unchanged.

Bidding for the mandate to arrange the new Eu200m five year facility for Privredna Banka Zagreb is under way and offers are due by today (Friday). Some banks have joined forces and created bidding groups including: Standard Bank, Bank Austria, WestLB and Sumitomo; HVB Group and BNP Paribas; and Dresdner Kleinwort Wasserstein, RZB and KBC. BayernLB, Citigroup/SSSB and Deutsche Bank are understood to be bidding alone for the mandate.

Mandated arranger RZB has signed banks into the Eu20m five year bullet facility for Roskilde Bank. The deal was well supported and increased to Eu50m. DZ Bank, Fortis International Finance, Landesbank Baden-Württemberg, Landesbank Rheinland-Pfalz, Landwirtschaftliche Rentenbank, NordLB and Vereins- und Westbank joined as co-arrangers for takes of Eu5m or more.

Rating: Aaa/AAA Amount: Eu250m Öffentlicher Pfandbrief series 810 (fungible with Eu750m issue launched 12/11/01)

Rating: A2/A- Amount: Eu300m

Guarantor: DSG Retail Ltd Rating: A3/A- (Moody's/Fitch)

Dollar swap spreads compressed tightly both before and after the surprise decision of the Federal Reserve to slash 50bp from the overnight Fed Funds rate this week. By yesterday (Thursday) afternoon, the five year dollar mid-market had come in to 47.5bp over the new five year Treasury and the 10 year was at 45.75bp over the new 10 year Treasury. Seven days ago, the five year and 10 year swap spread mid-markets were 61bp and 57bp, respectively. Swap spreads are now at the lowest levels seen since before the LTCM crisis of autumn 1998. Although the rolls into the new Treasuries are responsible for 3bp-4bp of the contraction in swap spreads, most of the narrowing seen over the last week needs other explanations.