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Globals * Conoco Funding Co

United Utilities has raised the ceiling and redenominated its $3 billion Euro-MTN facility to euro4 billion ($3.66 billion). The programme was signed in March 1998 with Deutsche Bank as arranger.

US dollar deals totalled $167.34 million. And investors were still demanding high credits, although B2-rated Unibanco - Uniao de Bancos Brasileiros managed to close a three-month $2.6 million deal. But most issuers were rated A2 or above with two triple-A borrowers. DePfa-Bank Europe closed a $21 million range accrual note via Merrill Lynch. The note is due to be settled on October 19 and goes out to 2004. And Royal Bank of Scotland closed a $50 million trade that goes out to 2013. Banque et Caisse d'Epargne de l'Etat Luxembourg closed a $7.9 million five-year trade that pays a final coupon of 7.000%. And World Bank closed a $10 million 10-year note.

The only issuers in US dollar yesterday were banking names. A total of $339.80 million was raised off the currency. Nearly all the issuers had a Moody's programme rating of A3 or over. Landwirtschaftliche Rentenbank closed a $30 million five-year note. Royal Bank of Canada lead managed the note and it pays a monthly coupon of 4.02%. And Caymadrid International announced a $150 million one-year trade. UBS Warburg is the bookrunner and the note is a plain vanilla bullet structure, linked to 3m $Libor -2basis points. Other issuers were HSBC Investment Bank (Netherlands), who did a $20 million note with a maturity of 70 days. And Barclays Bank issued a trade that goes out three months over 11 years. It pays a final coupon of 2.958%.

Twelve notes were issued in US dollar but again investors stayed away from the very short end. Commerzbank International issued the shortest dated note: a $10 million five-month trade that pays a final coupon of 3.600%. Other borrowers in the one-year or under sector were ING Bank with a $10 million 11-month note, Unibanco - Uniao de Bancos Brasileiros with two small deals: a $3 million six-month note and a $2 million one-year trade. And Bank of Scotland Treasury Services closed a one-year $10 million deal. The three- to five-year sector was in demand and SGA Societe Generale Acceptance was there twice with a $5 million three-year trade and a $15 million four-year note. Norddeutsche Landesbank went out a bit further to the five-year sector with a $10 million note that pays a final coupon of 4.200% and Banque et Caisse d'Epargne de l'Etat Luxembourg issued a $3.70 million note that goes out to October 2006. Rabobank Nederland dipped into 10-year dollar with a $10 million note that matures in 2011 and is due to be settled on October 24.

* Conoco Rating: Baa1/BBB+/BBB+

The effects of the economic downturn on the media sector will come under the spotlight next week when Dutch conglomerate VNU roadshows its inaugural benchmark bond. VNU is setting up an EMTN programme with Merrill Lynch as arranger. Merrill and Barclays Capital will act as joint leads on the first deal to come off the programme.

Do you hear sounds of tumbrels rattling down the street on their way to tea and chocolate croissants with Madame Guillotine? Look carefully at the tumbrels carrying the hapless occupants and you might see the Merrill Lynch logo. We have been expecting some changes in Merrill's corridors of power for some time and our scouts have provided us with good information.

Austria RZB has won the mandate to arrange a Eu350m credit for Bundesimmobiliengesellschaft mbH (BIG). Proceeds of the amortising loan are to buy state real estate.

* Republic of Italy Rating: Aa3/AA/AA-

The 27 yen trades announced on Friday were not the biggest the market has seen, but the feeling is that investors are starting to regain their confidence. Three triple-B issuers made deals, including Itochu International's first trade of the year. It was a ¥6 billion ($51.46 million) note that goes out to December this year and pays a final coupon of 0.15%. It was the biggest yen deal of the day, ahead of Banque et Caisse d'Epargne de l'Etat Luxembourg's ¥4.87 billion deal with an almost identical tenor. MMC International Finance (Netherlands) was another triple-B doing business. It announced a ¥500 million trade that matures in January next year and pays 0.4%. The last triple-B was Daiwa Securities SMBC Europe, which announced two ¥500 million trades. They both go out to September 2016, though one has a term that is three days longer than the other, and also has a final coupon of 1.5% as opposed to 2%. The financial repackaged issuers did the biggest volume of business. Though private banks did more than twice the number of trades, 12 compared to five, they also had less than half the value - ¥36.58 million compared to ¥81.09 million. Apollo Spires announced two deals, one for ¥3 billion that goes out to April 2004 and one for ¥800 million that matures in December 2003. Earls did a ¥2.66 billion 12-year trade, and Rosetta went for a 10-year ¥2 billion note. SEALS announced a ¥1 billion seven-and-a-half-year trade. World Bank was the only supranational involved in yen on Friday. It announced a ¥3 billion trade that goes out to October 2031.