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Telecoms woes, expected supply and impending European holidays weighed heavily on the markets this week, forcing issuers to delay launches and widen spreads substantially to attract investor demand in conditions that have worsened dramatically. Spreads on Deutsche Telekom, which is due to launch a Eu5bn-Eu8bn bond during the week of May 13, widened by 40bp over the week, causing some bankers to question whether the deal can go ahead. Lead managers Citigroup/SSSB, Deutsche Bank and JP Morgan confirmed that roadshows are going ahead for the multi-currency, multi-tranche bond, but a question mark hangs over the viability of dollar tranches given US investors' aversion to telco stocks.

France Crédit Agricole Indosuez Lazard and ABN Amro Rothschild have launched a Eu185m secondary offering in Bacou Dalloz, which makes personal protective equipment such as harnesses. Books opened for the deal on Monday and are expected to close on May 13. The offering will raise the freefloat of the company from 18.9% to 43%.

Rating: Aaa/AAA Amount: R150m

Gulf International Bank continues to work on the structuring of the refinancing of the $165m 10 year shipping facility for the Greenfield Shipping liquefied natural gas (LNG) vessel, Lakshmi. There are a number of issues including changed shareholding agreements which need to be concluded before the deal is launched to the market.

Petrobras shelved plans for a $300m-$500m 15 year political risk insurance (PRI) deal this week and Eletropaulo pulled a $150m Eurobond, after Brazilian sovereign bond prices plunged and a meltdown in US high grade telecoms debt spilled over into the emerging markets. BNDES has also reined in plans to issue a $300m five to seven year PRI deal, led by Morgan Stanley and Credit Suisse First Boston, to re-examine the market in light of Petrobras's decision.

Reports from the Asian markets this week suggest that Petroliam Nasional Berhad (Petronas) is to return to the dollar market and make its debut in euros with a jumbo international offering. Early reports suggested that the Malaysian oil and gas company is looking to launch a $3.5bn dual currency transaction in dollars and euros. At that level, the bond would be the largest non-sovereign deal from non-Japan Asia.

EuroWeek hears that the State of Bahrain is in discussions with banks for a $600m five year loan. According to one banker involved in the discussions, no formal mandate has been awarded yet although ABC, GIB, National Bank of Bahrain and Bank of Bahrain & Kuwait are said to be close to the borrower.

Rating: A3/A-/A- Amount: Eu300m

Land Berlin launched a two tranche Eu1.25bn bond on Monday, the first part of its Eu3.5bn-Eu4bn issuance programme in the public debt markets. The German state intends to raise around Eu11.2bn this year. The deal, led by Commerzbank, HSBC, HypoVereinsbank and Merrill Lynch, was divided into three and five year tranches. The first was a Eu500m increase to its Eu500m three year issue launched in February, at flat to mid-swaps, and the second a new Eu750m five year bond. The shorter piece was priced flat to mid-swaps and the five year at 2bp over.

SG has been mandated to arrange a Eu200m four year debt facility for BBB rated real estate company Befimmo. Banks have been invited to commit to the facility taking Eu20m for 27.5bp.

Amount: Eu100m Issue price: 100.00

Guarantor: Bombardier Capital Rating: A3/BBB+