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Tottenham Hotspur last week launched a novel debt programme blending the worlds of bank lending with whole business securitisation. Tottenham Hotspur Finance Co, arranged by Lazard, will issue four series of senior unrated bonds, allowing the club to start a youth football academy and expand the club's White Hart Lane stadium.

The Republic of Italy this week relaunched itself in the asset backed market with a Eu6.6bn equivalent securitisation of real estate assets. Lead managed by ABN Amro, Banca Nazionale del Lavoro, Citigroup/SSSB and JP Morgan, Società Cartolarizzazione Imm-obili Pubblici Srl (SCIP), which securitises residential and commercial real estate disposal proceeds, is a groundbreaking deal for the republic.

The nascent Portuguese mortgage backed market this week welcomed another issuer as Banco Espírito Santo closed a Eu1bn securitisation of subsidised mortgages via Credit Suisse First Boston and Deutsche Bank. Banco Espírito Santo (BES) has been a regular issuer in the Portuguese asset backed market since September 1999 when it closed a lease backed deal via Deutsche Bank. Since then it has launched a collateralised debt obligation and a second lease backed deal in April this year, via BNP Paribas and its own investment bank.

Somewhat overshadowed by the giant SCIP transaction, two European auto loan securitisations sneaked into the market this week. The first was Globaldrive BV Series E, a Eu733m issue for FCE Bank, the European arm of Ford Motor Credit. The deal securitised Spanish and Italian auto loans.

Mid Kent Water, the utility bought by WestLB, this week completed a £135m bond issue through RBS's water funding vehicle Artesian. WestLB's asset securitisation and principal finance group bought the utility in March 2001 through , Swan Capital Investments. The bank supplied £120m of senior debt along with a £50m capital maintenance facility, injecting £23m equity. The acquisition was always intended to be refinanced with a securitisation.

Banco Português de Negócios will next week price Chaves Funding No 3, a securitisation of consumer loans and lease contracts via Credit Suisse First Boston. Price talk for the triple-A tranche with expected maturity in 2004 is 35bp over three month Euribor. The single-A Eu19m bond and Eu8m triple-B bond, with maturity in 2006 and 2007 respectively, will be priced in the 90bp and 185bp-195bp over areas. Credit Suisse First Boston will price Euro Multi-Credit CDO, the Eu254m collateralised debt obligation of US and European ABS for Pacific Investment Management Company today (Friday).

Commerzbank this week launched a Eu1.51bn synthetic securitisation of residential mortgages lead managed by Commerzbank Securities. The deal, jointly lead managed by CDC IXIS Capital Markets, is the second time this year that the bank has used the KfW sponsored programme, after Provide Residence 2002-1 in June.

Morgan Stanley and co-manager Sampo Bank last Friday completed the Eu370m securitisation of Finnish forestland for Stora Enso, the integrated forestry products group. The deal is one of a select group of whole business deals to emerge from the continent and the first whole business securitisation of a forestry company.

Level 3 Communications' bank debt received a boost this week from the news that the company has signed a definitive agreement to acquire all the assets of bankrupt Genuity. Traders said that the bank debt rose to the 72 range up from the mid-to-high 60s. In mid-July, the company received approximately $500 million in new capital from Longleaf Partners Funds, Berkshire Hathaway and Legg Mason. At the time, there was speculation that Level 3 would be in position to begin consolidation in the telecom sector. Questions for Sureel Choksi, Level 3's cfo, were referred to a spokesperson, who did not return calls.

Issuance of sterling-denominated inflation-linked bonds is set to at least double next year and this should give the swaps market a boost. Inflation-linked bonds have been relatively uncommon in the sterling market, but pent up demand from pension funds and institutional investors is fueling increased interest from corporate and government issuers in the asset class, according to Mark Capleton, bond strategist at Barclays Capital in London. To date, there has been roughly USD1.5 billion in inflation-linked bonds issued this year and Capleton expects to see USD3 billion plus next year.

The Securities and Futures Ordinance was enacted in March 2002 and is widely expected to come into force by April. The SFO is a major piece of legislation, consolidating and superseding 10 primary pieces of current legislation relating to securities and futures.

"We have an atmosphere of liberalization toward these kinds of products." --Ciriaco Dator, head of banking group sector two, which regulates foreign banks, at the Bangko Sentral ng Pilipinas in Manila, on the reintroduction of foreign exchange products in the Philippines. For complete story, click here.