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Marking the merger of MTNWeek and EuroWeek, Chris Newlands takes a look at the state of the MTN market in Europe, and finds a determination among the top EuroMTN issuers to keep refining and adding to their well received programmes. While the debate continues over the balance between public and private issuance, EuroMTN activity as a whole is providing welcome business for the capital markets. Despite treacherous conditions, the EuroMTN market is battling on strongly. Nearly $700bn of debt has been closed this year and programme signings are hitting the market at a rate of eight a month. Around 3,200 deals have been issued in the global and Euromarkets since the start of 2002 and 70% of those deals have been traded off EuroMTN facilities.

Compiled by Douglas Glenn HSBC Bank plc, London Tel: +44 20 7336 3525

Rating: Aaa/AAA/AAA Amount: $2bn

Guarantor: Fantuzzi Reggiane SpA Amount: Eu25m (fungible with Eu100m issue launched 04/06/01)

ThyssenKrupp, the German steel producer, has hit the international capital markets with a dual signing of a Eu3bn debt issuance programme and a Eu1.5bn EuroCP programme. Deutsche Bank is the joint arranger on both debt facilities, together with Citigroup/SSSB on the EuroMTN shelf and Citibank International on the EuroCP programme. Issuers under both programmes will be ThyssenKrupp and ThyssenKrupp Finance Nederland.

Rating: Aa1/AAA Amount: $250m

The syndication of the £1.795bn of debt facilities for Tube Lines, will be closed on schedule today (Friday). The fact that no extensions have been granted suggest the lead banks are looking at decent subscription levels, despite the fact that they did not go out to as wide a group of banks as had been expected. The lead banks on the deal are HBOS, Mizuho, SG (bookrunner) and WestLB. In retail, banks have been invited to join at three levels: co-arrangers taking £50m or more for fees of 70bp; lead managers taking £35m for 55bp in fees; and managers with £20m for 37.5bp.

Mandated arrangers ABC (facility agent) and Citigroup/SSB (bookrunner) will sign banks into the $50m facility for Union International de Banque (UIB) in Tunis on Thursday July 18. Arab Investment Company has joined the deal as a lead arranger for a take of $10m (for details of tickets and fees see EuroWeek 760).

Arrangers ABN Amro and Citigroup/SSSB (facility agent) will sign banks into the $75m 370 day club-style debut facility for Petrol Ofisi in Istanbul on July 22. Crédit Lyonnais, Crédit Agricole Indosuez, Deutsche Bank, Oyak Bank, BNP Paribas, HSBC, ING and Finansbanken have also joined the transaction.

Deutsche Bank is the sole arranger and dealer of a new EuroMTN programme signed by BHP Billiton, the Australian mining company. Four different branches of BHP Billiton have been named as issuers of the programme. KommuneKredit has increased the debt ceiling of its $2bn EuroMTN programme to $5bn. Eske Hansen, head of MTNs for the issuer, said: "We have decided to increase the programme's limit because we realise that a larger part of our funding in the coming years will be through the international capital markets rather than the domestic market which has been very important for us in the past."