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EASTERN EUROPE Deutsche Bank has launched a Eu25m repackaging of Landesbank Baden-Württemberg debt into 10 year publicly listed bonds linked to a bundle of sovereigns comprising the Republic of Romania, the Russian Federation and the Republic of Bulgaria. The bond has a 11.25% coupon at par.

Caixa Geral de Depósitos (CGD) is due to return to the public markets after a two year break, with a senior Eu1bn five year floater. BNP Paribas, Morgan Stanley and Nomura International will lead the deal, which should be priced in the next few weeks. The five year floating rate note structure was chosen for cost reasons, said Filomena Oliveira, a manager in the financial markets division at Caixa Geral. "There is a captive investor base for this kind of product," said Oliveira. "But one of our main aims is to diversify as much as possible geographically."

Although the markets were quiet this week as borrowers, bankers and investors took extended Easter holidays, the new issue pipeline is bulging, with many transactions poised for launch in the next two to three weeks. RWE kicks off its roadshow on April 10 ahead of its Eu5bn plus equivalent multi-currency, multi-tranche bond to finance the acquisition of Innogy and Transgas.

* DePfa Bank Europe plc Guarantor: DePfa Deutsche Pfandbriefbank AG

Credit Suisse First Boston and UBS Warburg completed a swift Sfr1.5bn (Eu1bn) sale in Novartis, the Swiss pharmaceutical company, on Wednesday morning. The two banks bid for the stock, which was being sold by the Sandoz Family Foundation, on Wednesday morning and launched the deal shortly after. The books were closed within an hour of the deal being launched with the banks pricing the deal at a 3.2% discount to the previous night's close. The 23m shares, some 0.9% of the company, were priced at Sfr64.3.

Croatia Joint arrangers Mizuho (DKB) and Zagrebacka banka are preparing to launch the $100m syndicated medium term loan for Industrija Nafte (INA).

The theme of the dollar swap market was very much the same as last week: plenty of debt was issued in the dollar sector and much of it was swapped to floating rate. In lieu of any countervailing pressures, swap spreads crunched lower, though by the end of the week there were signs that a bottom had been reached.

Deutsche Bank and Citigroup/ Salomon Smith Barney emerged this week as the winners of the hotly contested mandate for a $500m three to five year global bond issue for Chile. The real battle, however, now begins, as the underwriters try to determine where Chile should price at the short end of the dollar curve.

The lure of a strong local bid and a solid credit profile this week helped El Salvador achieve its best pricing yet in the international capital markets, with a $500m 30 year Euro/144a issue pricing just 17bp back of higher rated Mexico. Originally expected to be $300m, the offering, lead managed by CSFB and Citigroup/Salomon Smith Barney, was increased and priced at the tight end of its range after attracting a three to four times oversubscription.

El Salvador * Republic of El Salvador