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  • THE Korean Export and Import Bank may next week take renewed steps to open the dollar market for credits from the country with a 144A offering led by Salomon Brothers and SBC Warburg Dillon Read. If approved by the Korean ministry of finance and economy, the bond will be launched into a hostile environment: spreads on Korean bonds widened significantly this week, even for a recently successful global bond from the Korean Development Bank, and an issue from the city of Taegu struggled.
  • THE Korea Electric Power Corporation (Kepco) this week managed to pierce the gloom surrounding Korean credits with a largely successful three-currency funding exercise. Adapting the diversified and adventurous funding approach adopted by compatriots KDB and Kexim, Kepco raised the equivalent of $280m through a Lit200bn three year bond paying a coupon of 6.25%, a £50m tap on an existing £150m 10 year issue launched this April, and a DM150m five year FRN re-offered at Libor plus 85bp.
  • * LTCB Securities has privately placed the first securitisation of auto leases in Japan, for Japan Leasing Auto, an affiliate of Japan Leasing Corp. The bank sold ¥10bn of bonds in 10 tranches, maturing every six months from April 1998 to October 2002. Investors receive a semi-annual fixed rate coupon. Under private placement regulations they must hold the bonds for at least two years.
  • HOPES that a $300m ADR by Pohang Iron & Steel (Posco) might breathe new life into Korea's primary equity market faded this week as the company confirmed that it will not go ahead with the issue until there is an improvement in market sentiment. Company officials told Euroweek that since the group has adequate cash balances, it has no need for immediate funds.
  • SALOMON Brothers has reopened the Indonesian securitisation market, paralysed since July by the rupiah's plunge, with a blow out deal. Indonesian Motor Vehicle Funding 1997-1 Ltd, registered in the Cayman Islands, sold $177.6m of floating rate notes with an average life of 1.03 years and expected maturity in June 2000. The notes are wrapped by Financial Security Assurance, earning a triple-A rating from Moody's and Standard & Poor's.
  • A CONVERTIBLE bond offering for Taiwanese SRAM manufacturer Winbond scraped home yesterday (Thursday) with pricing at the far end of the revised deal's indicative range. The deal was hit by the mini-meltdown in the republic's stock and currency markets prompted by the government's decision to abandon its support of the Taiwanese dollar last Friday. Following those events bankers said most of the immediate pipeline from the country has been thrown into disarray.
  • South Africa The well supported $225m (increased from $200m) one year term loan being arranged by Bank of New York, DG Bank, NatWest Markets and Sumitomo Bank for ABSA Bank Ltd was signed last Friday.
  • China Nippon Life Insurance Co and Sumitomo Bank have been mandated to arrange a $50m term loan for China Petro-Chemical Corp (Sinopec).
  • Indonesia Asset backed securities
  • THE mounting crisis in Asian markets dominated sentiment on Thursday following the sharp fall in the Hang Seng index and attacks on the Hong Kong dollar. Equity markets fell globally as a result of the Hong Kong turmoil, and government bond markets rallied dramatically as investors sought a safe haven from the stockmarket turbulence.
  • Market commentary Compiled by Gerard Perrignon, Hambros Bank Ltd, London. Tel: +44 171-865 1759
  • Australia NatWest Australia has been mandated to arrange a A$350m note issuance facility for BHP. The five year deal is to refinance existing debt.