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Dollar swap spreads this week appeared to have found a range in which they are comfortable. Yesterday (Thursday) the 10 year closed at a mid-market of around 91.75bp and the five year closed at about 83bp. Both these prices have stayed quite constant over the past week. Thirty year spreads are bid at around 77bp over the long bond and two year swap spreads are bid at 61bp. The yield curve between two years and 10 years is about 78bp, at the low end of the recent range. The 10 year versus 30 year curve is at about 28bp.

Dutch office products group Buhrmann announced this week that it will raise between Eu600m and Eu700m in equity capital before the end of the month to finance two recent acquisitions. The money will fund the Eu320m acquisition of the office products division of Samas-Groep, announced in December 2000, and the purchase of the US distribution activities of US Office Products Company, announced on Monday. The purchase price of the second is $250m, but the total cost is projected at $400m.

Croatia

The European Bank for Reconstruction and Development (EBRD) announced today (Monday) the resignation of its first vice president. Charles Frank will step down from the position in late August when his four year contract with the bank expires.

The effective enforcement of corporate governance and transparency of regional corporates will prove vital if demand for Asian exports slows down as expected, according to speakers at the Euromoney Asia Pacific Issuers and Investors Forum in Hong Kong today (Tuesday).

Two new leveraged facilities totalling Eu1.362bn were launched this week, continuing the steady flow of leveraged deals in the market. Sole lead arranger and bookrunner Deutsche Bank has launched the Eu435m LBO for Elf Antargaz. A site visit is planned for today (Friday). Barclays has joined as lead arranger.

Brazil * Banco Itau (Cayman Islands) SA

Botswana has received a long term foreign currency rating of A2 from Moody’s, as well as P1 for short term debt and A1 for domestic long term debt. The ratings have stable outlooks.

In Turkey, doubts are arising over the independence of action enjoyed by Kemal Dervis, who was appointed by the government from the World Bank to handle the country’s economic crisis

After being forced to abandon its merger with Iberdrola, Spain’s largest utility company Endesa yesterday (Monday) announced its intention to sell off approximately Eu5bn in assets over the next four years.

The Eu1bn Iberia IPO cleared its first hurdle this week when the company's management persuaded its pilots to go back to work. Now it is investors who have to be won over. The end of the pilots' work-to-rule protest means that the Spanish government can press ahead with the sale of its remaining 54% stake in the national airline. The pilots had been protesting without serious consequence since February 26. However, a combination of bad weather and lack of cooperation from them meant that 50% of Iberia's flights on Tuesday and 30% of its flights on Wednesday were delayed. The pilots' union Sepla was renegotiating labour contracts. "The pilots were using this point to push the company to agree with their requirements so that the IPO would not be damaged," said a company spokesperson.

Eni, the Italian oil and gas company, has appointed Schroder Salomon Smith Barney as financial advisor for the Eu4bn flotation of its gas distribution network. SSSB will advise on the creation of a new vehicle, Rete Gas Italia, of which the company will float between 30% and 50%. The unit has been given a regulatory asset valuation of Eu10bn.