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Hypo Real Estate Bank International, the Dublin-based commercial real estate financing business of the Hypo Real Estate Group, is set to sign a Eu3bn multi-currency EuroCP programme through Citigroup today (Friday). Citigroup is to be joined as a dealer on the programme by Barclays Capital, Deutsche Bank, Dresdner Kleinwort Wasserstein, Royal Bank of Scotland, UBS and the issuer.

Over the past couple of years Icelandic borrowers have been raising unprecedented amounts of debt in the international capital markets. Duncan Kerr reports on the increased flows that have funded international expansion and galvanised the investment community.

The $100m three year fundraising for Bank of Baroda has received commitments from two banks. BA Asia, BNP Paribas, HSBC and Mizuho Corporate Bank are arranging the deal.

The £2.7bn recapitalisation for Invensys this spring included the most controversial bank debt financing of the year. Invensys took flak around the market for appointing Deustche Bank as a sole lead for the bond and loan. Despite Deutsche's failure to bring sub-underwriters into the deal, the bank has managed down its exposure and Invensys has time to turn itself around. Adam Harper finds out how.

Sole mandated lead arranger Barclays has cut pricing on the £400m mezzanine portion of the debt supporting the purchase of the Automobile Association (AA) from 11.5% to 10.5%. This reduction ? called a reverse flex ? is becoming a regular feature on mezzanine tranches of debt backing buy-outs, much to the dismay of mezzanine investors. It is also putting arranging banks in a very uncomfortable position in between sponsors and investors. Sponsors CVC and Permira are buying the AA, and after a nearly two times oversubscribed syndication of the mezzanine debt in which £700m was raised, they put pressure on Barclays to reduce pricing. Those who invested in the deal said the houses wanted the sole mandated lead arranger and bookrunner to reduce pricing much further than it actually did.

The £300m five year revolver for building materials manufacturer CRH has been signed with an additional Eu200m portion.

Like their European peers, borrowers in the Nordic region benefit from the ample lending appetites of banks. Companies in Sweden, Finland, Norway and Denmark have been able to slash their borrowing costs from already cheap levels in 2003. Bankers predict this will only continue as a rash of borrowers are set to come to the market to refinance facilities in the fourth quarter. Taron Wade reports.

Italtel, the Italian telecom equipment company, has embarked on an IPO, in which it could raise up to Eu400m with a Milan listing as soon as November. The company recently appointed Lazard as adviser and Goldman Sachs, Merrill Lynch and UniCredit Banca Mobiliare as joint global coordinators.

Private equity houses are in the final stages of bidding for the sale of German clothing firm CBR Holding. Apax Partners, Cinven and Permira are vying for the company and the sale could generate at least Eu1bn.

UK broadcaster ITV sold its entire 5.5% stake in French electronics company Thomson on Wednesday, raising Eu255.8m. Citigroup and UBS sold the shares before the Paris market opened on Wednesday, having won the transactions as a bought deal, with each taking equal risk. Citigroup also provided ITV with a hedge on the sale, as the shares sold underlie a deeply out of the money exchangeable bond.

Nissan Motor has completed syndication of a $1.4bn refinancing that was arranged by Citigroup.