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Brazil was given a rude awakening this week when it was forced to widen the launch spread of a $1bn eight year global bond as investors boycotted what they considered to be yet another aggressively priced offering by the sovereign. Lead managers JP Morgan and Morgan Stanley, understood to have backstopped the deal at 710bp, had to forgo their 45 cent fees to bump the new issue spread up by 9bp to 719bp to bring momentum back into a book that stalled on Wednesday afternoon at $650m.

Brazil was given a rude awakening this week when it was forced to widen the launch spread of a $1bn eight year global bond as investors boycotted what they considered to be yet another aggressively priced offering by the sovereign. Lead managers JP Morgan and Morgan Stanley, understood to have backstopped the deal at 710bp, had to forgo their 45 cent fees to bump the new issue spread up by 9bp to 719bp to bring momentum back into a book that stalled on Wednesday afternoon at $650m.

EuroWeek understands that equity sponsors are in talks with banks about the £125m financing backing the buy-out of Carcraft. The deal was originally mandated to Royal Bank of Scotland and Mizuho (Fuji) in 2001.

Compiled by Holger Kron Deutsche Bank, Frankfurt

A number of banks are still looking at the $500m portion of the $1.8bn project financing for Shanghai Petrochemical Co (SECCO). Some have already committed to the deal, while others have asked for an extension to the deadline to allow further inspection of the transaction.

Ciba has added Ciba Speciality Chemicals Eurofinance as an issuer off its $2 billion Euro-MTN programme. The new issuer will be the fourth on the shelf, which was signed in 1997.

Citigroup/SSSB showed the importance of a strong balance sheet to secure top spot in the European equity-linked league table as it completed a fully underwritten $1.1bn convertible issue for Anglo American, the South African mining group, on Monday. Citigroup took the business on from Anglo American in a competitive bid on Friday afternoon, and then officially launched the deal on Monday, although the bulk of the offering was placed with investors over the weekend. The attraction of the issue lay principally in the new exposure that the bond offered investors.

Commerzbank is looking to sell its UK fund management arm Jupiter and merge its German operations, as it revealed 2001 profits of just Eu102m this week. The move was widely anticipated by market observers.

A small group of banks has been selected to underwrite the £425m five year dual tranche facility funding Davis Services' acquisition of Denmark's textile services group Sophus Berendsen. HSBC is sole arranging and underwriting the facility that is split between a term loan and a revolver.

Bidding is under way for Hrvatska Banka za Obnovu Ratvitak's (HBOR) $40m-$50m new credit facility. The borrower hopes to achieve a benchmark margin and an extendable tenor. The board of HBOR is due to convene next week to finalise details.

Arranger UBS Warburg will launch the debt facility supporting Group 4 Falck's $573m acquisition of the second largest US security services company Wackenhut to sub-underwriters early next week. UBS is sole underwriting a $1.335bn bridge loan but the total amount of debt to be syndicated will be clarified once Group 4 Falck and its creditors have decided on how much of its existing lines will be rolled over.