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  • Despite persistent volatility in the markets and loud claims by professional investors that the price range is too high, retail demand for the Eu840m-Eu970m IPO of Spanish airline Iberia keeps coming. While institutions haggle over price, private investors are piling into the issue. "We already have demand for more than double what we have rights for," said one banker collating retail orders in Madrid.
  • Spanish airline Iberia completed its Eu586m IPO today (Monday) at a giveaway price, after investors showed a reluctance to put money to work in a sector that has consistently lost value over the last six weeks.
  • K2 Corporation has concluded a $10 million Euro-MTN, which is to be issued on April 9. The note matures on October 7 2002. The bookrunner is Barclays Capital. This is the issuer's seventh trade of 2001, all but one of which have been denominated in dollar. The exception was a euro30 million ($26.6 million) note issued on January 22.
  • JP Morgan and UBS Warburg today (Monday) launched a Eu450m 10 year deal for the Republic of Slovenia, which according to the leads enjoyed a substantially oversubscribed book, but which could not be increased beyond the final amount because of a strict limit on borrowing laid down by the issuer.
  • * Allmerica Global Funding LLC Rating: AA-/AA (S&P/Fitch)
  • The bond market is preparing to absorb more jumbo issuance from telecoms companies in the coming fortnight, with KPN and Telecom Italia poised to launch Eu2bn and Eu5bn issues respectively. KPN's transaction, to be priced next week by ABN Amro, Barclays and CSFB, is expected to include a five year tranche priced at mid-swaps plus 245bp-255bp and a 10 year at 275bp-285bp, in line with the Dutch telco's default swap levels.
  • The City of Gothenburg has issued a dual Swedish kronor trade off its $1 billion Euro-MTN programme. The largest of these notes is a Skr50 million ($4.85 million) issue. The note pays interest singularly. The smaller issue is for Skr40 million and pays quarterly interest. Both notes are to be issued on April 2 and have a five-year maturity. These are the City of Gothenburg's second and third issues respectively in its national currency, following their Skr700 million issue in November 2000.
  • The Republic of South Africa enhanced its reputation as a canny borrower this week with its first tap of the European bond market for two years in what was described by bankers and investors as a prudent deal in difficult conditions.
  • Dollar swap opportunities for top quality borrowers are better than they have been for a few weeks, as evidenced by several large, liquid issues by triple-A borrowers this week. All appear to have been swapped out of fixed rate dollars at generous sub-Libor levels. The parlous condition of the equity markets has afforded prestige borrowers the opportunity to offer debt at comparatively cost effective levels, said a treasury official at the World Bank, which this week priced a $500m five year transaction.
  • National Australia Bank has issued three notes off its $7.5 billion Euro-MTN programme. Two of the Euro-MTNs are denominated in Hong Kong dollar and each total HK$120 million ($15.39 million). The trades also both pay interest quarterly and mature on the same date - April 2 2003. The remaining trade is a S$50 million ($27.84 million) issue which matures on June 30 2003. It pays interest singularly and has a final coupon of 6.60%.
  • Roadshows started yesterday (Thursday) for United Biscuits' £220m equivalent high yield issue, which is likely to consist of 10 year financing in both sterling and euros. The high yield take-out financing for United Biscuit's LBO had initially been put at £325m, but the deal has been a long time in the making and assets have since been sold as part of the business plan for the buy-out.
  • The syndication of the £197.5m of senior and mezzanine debt facilities for Eubisco will be closed today (Friday), heavily oversubscribed by mandated arrangers Deutsche and CSFB. In sell down, banks have been offered two tickets - £15m for 80bp and £10m for 65bp.