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The European Investment Bank is diversifying its funding sources into the Swedish krona market by setting up a Skr30bn domestic bond issuance programme designed to provide investors with large, liquid alternatives to Swedish government bonds. The programme, called ELK (EIB liquid kronor programme), will target investor demand for highly rated paper following the decrease of Swedish government debt issuance in recent years.

* European Investment Bank Rating: Aaa/AAA

* Australia & New Zealand Banking Group Ltd Rating: Aa3/AA-/AA-

Domestic issuance: * Banque Cantonale Vaudoise

Following the success of the deals for Garanti Bank and Yapi ve Kredi Bankasi, Finansbank has mandated Alpha Bank, Bankgesellschaft Berlin, Bank of New York, Bank of Tokyo-Mitsubishi, BVB Group and First Union National Bank to arrange a $60m one year term loan. The deals for Turkey's Garanti Bank and Yapi Bank were both closed oversubscribed and increased from $200m to $350m.

The UK power market is beginning to stir after a lengthy period of inactivity owing to the government's ban on new build gas fired plant. While few greenfield projects are being planned, the loan market is expecting a large number of deals supporting asset transfer activity on either a project or corporate basis. UK and US power companies are bidding for the acquisition of Edison Mission's Fiddler's Ferry and Ferrybridge generating plants, which have a combined capacity of around 4,000MW. The transaction is expected to be worth around £1.5bn.

Mandated arrangers Barclays Dresdner, Goldman Sachs and HSBC have signed banks in following completion of senior syndication of the Eu3.5bn acquisition loan for Gallaher. There were two levels on offer at the senior syndication stage. Banks were invited to either underwrite £150m as arrangers for an underwriting fee of 30bp and a further 20bp on projected final takes of £95m, or £100m for an underwriting fee of 25bp and 15bp on target holds of £65m.

Three quarters of the market volume on Friday was traded in US dollar, with several large trades for $100 million or over. The biggest trades came from Federal Home Loan Banks, with a $500 million 19-month note, and from Nederlandse Waterschapsbank, with a $300 million four-year trade. Svensk Exportkredit was in the mid-term with a $20 million five-year note. It has a final coupon of 11.450% attached and pays interest semi-annually. Salomon Smith Barney has managed 44 of SEK's trades this year, according to Dealogic Capital Net's MTNWare. Mizuho has managed 22. And Lloyds TSB Bank's $10 million note goes out to 2016. It pays a final coupon of 6.5%. BNP Paribas and Mizuho have both lead-managed six trades each for the issuer this year.

Globals * European Investment Bank

The US dollar sector saw trades from Jackson National Life Funding, Toyota Motor Credit and Hamburgische Landesbank. Thirty-five trades were done in the currency and made up over 40% of the market volume. Five trades were closed in the one- to three-month sector. Three came from HSBC Bank USA, while Unibanco - Uniao de Bancos Brasileiros and HSBC Investment Bank (Netherlands) were also present. HSBC's trades were for amounts between $350,000 and $800,000 and all mature on October 5, 2001. Unibanco's $5.53 million note and HSBC Investment Bank's $20 million note both mature on November 28 this year. Names in the one-year sector include Centauri Corp ($5 million), Pfandbrief Bank International ($50 million) and Bank of Scotland Treasury Services ($194.5 million). Toyota Motor Credit's $410 million trade goes out to 2004 and was managed by Nomura. The non-syndicated note pays a final coupon of 4.1% and was the only borrower in the three-year sector on Tuesday. Only Freddie Mac issued a larger note, a $500 million five-year trade that pays a final coupon of 5.25%. Hamburgische Landesbank's $17.65 million trade was one of four in the four-year sector. Others were SGA and HSBC Bank USA.

* Alliance & Leicester Group Treasury plc Guarantor: Alliance & Leicester plc

Thirty-six trades were announced in US dollar yesterday, representing under 20% of the market volume. Issuance at the short end was down on the previous day, with only HSBC Investment Bank (Netherlands) trading in the one-month sector with a $20 million note. Unibanco - Uniao de Bancos Brasileiros came closest, also with a $20 million note that has a six-month tenor. The Brazilian issuer also issued in the one-year sector with a $3 million note, as did Bank of Scotland Treasury Services with a $100 million FRN. Ursa Minor, Bear Stearns's financial repackaged entity, closed a $25 million three-year note. And Britannia Building Society closed a four-year $17.65 million note. Lehman Brothers led two trades in the five-year sector: a syndicated FRN for Alliance & Leicester Group Treasury for $300 million that pays a final coupon of Libor+0.15%. And a non-syndicated $6 million FRN for Abbey National Treasury Services. BNP Paribas did the longest-dated note: a $10 million 10-year trade that pays interest semi-annually.