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Private client investment manager Rathbones launched the Rathbone Ethical Bond Fund this week, only the third fixed income ethical retail fund available to buyers in the UK. The fund offers a risk diversified alternative to Gilts, and will be welcomed by UK investors who have chosen not to invest in government bonds for ethical reasons. Although it is a growing field, the fund management industry has concentrated its ethical and socially responsible investment activities on equities.

Compiled by Stephanie Weedon HSBC Bank plc, London

Guarantor: Commonwealth of Australia Rating: Aaa/AAA

Rating: Aaa/AAA Tranche 1: $1.5bn

Rating: Aaa/AAA Amount: $500m

Guarantor: Assicurazioni Generali Amount: Eu95m

Activity in the secondary market has been dominated by the Eu5.9bn acquisition facility for Imperial Tobacco that broke free to trade on Friday May 3. Most movement has been on the longer dated tranches, which include a Eu1.4bn three year term loan and a Eu2bn five year revolver. Secondary traders say that the most popular piece has been the Eu1.4bn term loan.

Investor resistance to triple-B credits created by the recent deterioration in corporate spreads will shortly be tested by Imperial Tobacco, which is planning a Eu2.1bn equivalent dual currency bond in late May. The transaction, which will be split into five year euro and 10 year sterling tranches, will be led by global co-ordinator JP Morgan and joint bookrunners Citigroup/SSSB and HSBC. The bond will have a coupon step-up of 125bp in the event of a downgrade below investment grade by either Moody's or Standard & Poor's (S&P). It is reversible in the event of an upgrade to investment grade by both agencies.

The $75m five year facility for Industrial Development Bank of India (IDBI) is being well received by the market. Mandated arranger Citigroup/SSB has approached a number of banks to join the deal and credit committees are reviewing the documentation.

Rating: Aaa/AAA Tranche 1: $81m

HMV Group sank 7% on its £560m debut on the London Stock Exchange yesterday (Thursday), suffering from investors’ apathy towards a faltering IPO market.

HMV Group sank 7% on its £560m debut on the London Stock Exchange yesterday (Thursday), suffering from investors’ apathy towards a faltering IPO market.