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After two weeks of buoyant volumes in the face of the build-up and execution of the US-led Iraqi invasion, MTN volumes finally succumbed to the effects of the war this week. Issuance fell sharply from $11.16bn to $7.7bn, and the number of trades executed from 530 to 351. The market's fall was a consequence of positive rather than negative sentiment. Public bond issuance rebounded sharply this week, with borrowers across the credit spectrum able to raise funds. Triple-A credits including the European Investment Bank, Freddie Mac and Kreditanstalt für Wiederaufbau were able to launch large transactions, but at the same time lower rated borrowers such as Deutsche Telekom were able to launch issues off their MTN programmes, and even sub-investment grade rated Vivendi was able to access the market in size.

Svenska Cellulosa AB (SCA) has increased the size of its EuroMTN programme from Eu1.5bn to Eu2bn. The programme was established in March 2002. Citigroup is arranger. Banco Finantia has been added as a dealer to Banco Safra's $3bn Global MTN programme. Banco Safra's programme, originally $500m, was signed in June 1995. Lehman Brothers is arranger.

Rating: Aa3/AA/AA Amount: $500m

Rating: Aa3/A+/AA- Amount: Eu325m (fungible with Eu75m issue launched 15/01/03)

Rabobank has underwritten Eu60m of senior debt for the leveraged buy-out of Roompot Recreatie Beheer. Private equity sponsor NeSBIC and the management of Roompot have bought out the business. Debt is split into a Eu25m senior term loan 'A', a Eu30m bullet term loan 'B' and a Eu5m revolver. ABN Amro has taken 50% of term loan 'A' and 'B'.

Mandated arrangers ABN Amro (joint bookrunner), Crédit Lyonnais (joint bookrunner), Fortis Bank, HVB Group, ING and WestLB have signed banks into the $460m term loan for Bonny Gas Transport Limited. Commerzbank, Bank of Scotland, BayernLB, Natexis Banques Populaires, Nordea and SEB Merchant Banking joined as arrangers for tickets of $30m.

France The French parliament on Tuesday passed a law to enable the next part of the privatisation of Air France to go ahead.

Mandated arrangers BayernLB, DnB Markets and LB Kiel have closed syndication of the Eu100m five year bullet term loan for Sparebanken Oest. The facility will be increased to Eu120m when the 14 banks are signed in on April 2003. Three tickets were offered during syndication: co-arranger for a take of Eu10m for 17.5bp flat; senior lead manager for a take of Eu7.5m for 15bp flat; and lead managers for tickets of Eu5m for 12.5bp flat.

Cement company Cimentos de Portugal (Cimpor) is talking to banks about a new loan. The company last borrowed in 2000 when it secured a $846m dual tranche facility. Proceeds refinanced a bridge loan which backed the company's acquisition of Brazil's Brennand. Citigroup and Deutsche Bank arranged that facility. Debt was split into a Eu125m term loan with an average life of four years, a Eu500m five year term loan and a $250m 364 day term loan. Pricing moved on a ratings grid moving between 35bp and 45bp.

The mandate to arrange the Eu400m five year facility for TPSA is to be awarded imminently. Bids were collected in by the end of March. A shortlist was announced at the end of last week. Banks in the running for the mandate include ING and RZB, according to bankers.

Rating: Aa3/AA Amount: C$200m