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Forty-five percent of the volume in US dollar yesterday came from Germany issuers, in particular Landesbank Sachsen. It announced three deals for $10 million, $20 million and $40 million. All were led by Goldman Sachs and have terms of one year. The $20 million and the $40 million notes pay 1m $Libor, and the $10 million note pays 3m $Libor. Norddeutsche Landesbank was also active, announcing a $25 million 13-year deal. HypoVereinsbank acted as dealer, and the coupon is fixed at 6.26%. Abbey National Treasury Services did a $3.58 million three-year trade. Deutsche Bank self-led a $5 million seven-year issue, and Lehman Brothers self-led a $20 million three-year note. Lloyds TSB Bank went for a $6.1 million 10-year deal with Salomon Smith Barney as bookrunner. Salomon also led deals for Banque et Caisse d'Epargne de l'Etat Luxembourg ($7 million, five years), European Investment Bank ($20 million, 20 years) and Inter-American Development Bank ($50 million, seven years). Royal Bank of Scotland went for two deals, both for $10 million. They have terms of five years and two years. Bank of Scotland Treasury Services did a $70 million two-year deal. Lehman Brothers was the dealer and the note pays $Libor plus two basis points, and was issued at par.

BNP Paribas has arranged a £101.9m senior debt facility for the Allied Healthcare Group. The facility is divided into five tranches. Tranche 'A' is a £23.8m four year amortising term loan that pays a margin of 225bp over Libor. Tranche 'B' is a £12.5m five year amortising term loan that pays a margin of 275bp. Tranche 'C' is a £50m five year amortising term loan that carries a margin of 350bp. The deal includes a £5m four year revolver with a 225bp margin and a £10.6m six year mezzanine tranche that pays 350bp.

* Bank of Scotland Treasury Services plc Guarantor: Bank of Scotland

The ICI rights issue prompted jitters this week in the UK market, as investors speculated which company would be the next to announce a capital restructuring. Invensys, the controls and automation group, denied it was preparing a rights issue to reduce its £3bn debt burden. Analysts have long suspected that if Invensys is unable to make enough headway on its divestments programme, it may have to resort to a rights issue (see EuroWeek 713).

Globals n Fannie Mae

In an atmosphere of near panic, investors sought to reduce their exposure to credit this week and corporate spreads widened dramatically on any piece of negative news. DaimlerChrysler bonds widened by around 30bp after the company reduced its 2002 earnings target. The rest of the auto sector moved out in sympathy, with Ford bonds in particular encountering strong selling pressure. Ford's recent 6% 2005 bond widened to 264bp over mid-swaps, having been launched at 170bp over.

Twelve of the 13 trades announced in US dollar only just amounted to over $100 million, but with a single public deal from Nomura Global Funding the volume reached over $800 million. The $680 million three-year trade was led by Nomura International, and had Credit Suisse First Boston and Merrill Lynch as co-managers. World Bank's $30 million trade was the next biggest and goes out to February 2005. It has a fixed coupon of 3.3%. KfW International Finance announced two deals. One was a $10 million two-year trade with BNP Paribas as bookrunner, and has a fixed coupon of 3.325%. It has a single call option after six months. The issuer also went for a $20 million five-year step-up deal via Morgan Stanley. It has an initial coupon of 4.5% and then steps up by 25 basis points every year. Call options are available after year one and annually thereafter. Sigma Finance Corp went for a $4 million seven-year range accrual trade. BNP Paribas was the dealer. And Eurofima did a $11.9 million eight-year deal.

Dairy products and fruit juice manufacturer Wimm-Bill-Dann this week became the first Russian corporate to launch an initial public offering in the international equity markets since mobile telephony firm MTS in July 2000. Global co-ordinator and bookrunner ING Barings priced the American Depository Share (ADS) issue for the first Russian consumer goods company to list in the US after the close of trading on the New York Stock Exchange yesterday (Thursday).

Austria Arrangers Bank Austria (joint bookrunner), Citigroup/SSSB (joint bookrunner) and Dresdner Kleinwort Wasserstein (joint bookrunner, facility and documentation agent) are waiting for one laggard to join the Eu500m five year revolving credit facility for OMV before closing general syndication next week.

Last week ended relatively slowly in the yen market, with just 17 trades announced, compared to a daily high during the week of 46. KfW International Finance issued the biggest note. It was a ¥2.2 billion ($16.43 million) 30-year trade. Other triple-As included European Investment Bank, with a ¥1.6 billion note and a ¥1 billion note. Both go out to February 2032. And World Bank went for a ¥1.2 billion deal and a ¥1 billion deal with respective maturity lengths of 20 years and 30 years. Credit Lyonnais Finance went for a ¥50.78 million trade and a ¥50.65 million trade, both with terms of three months. Kommuninvest I Sverige announced a ¥100 million 25-year trade with Goldman Sachs as bookrunner. It has a power reverse dual currency structure linked to the Australian dollar and yen exchange rate. Baa1-reated Sumitomo Chemical Capital America did a ¥1 billion one-year trade. Toshiba International Finance (Netherlands) did a ¥1 billion six-moth trade.

Eighteen trades were announced in the yen market on Monday and amounted to $124.7 million. Mitsubishi Electric Finance Europe did ¥5 billion ($37.35 million) of this in three trades, one for ¥3 billion with a term of two months, and two for ¥1 billion. The latter have terms of two months and three months. The usual triple-As were doing business too. KfW International Finance announced a ¥1 billion 30-year deal with Salomon Smith Barney as bookrunner. World Bank went for a ¥1 billion trade, also via Salomon, and with a term of 25 years. And Kommunalbanken did a ¥1 billion 29-and-a-half year trade via Salomon. Sanwa International did a ¥52.96 million three-month deal. Svensk Exportkredit went for a ¥800 million 19-year-and-two-month trade via Salomon Smith Barney, and also announced a ¥1 billion 15-year deal. UBS did a ¥2.8 billion five-year trade. In the financial repackaged sector Apollo Spires, the Merrill Lynch-arranged conduit, announced three trades, for ¥500 million (one-year-and-eight months), ¥660 million (three-years-and-five-months) and ¥1 billion (three-years-and-seven-months). Voyager, the Daichi-Kangyp Bank SPV, did a ¥500 million one-year-and-10-month trade.

Yen trades are down as the region slips out of holiday mode, but Westland/Utrecht Hypotheekbank still managed to do a callable hyper reverse dual currency note. The ¥500 million ($3.71 million) deal is very similar to a normal callable reverse dual currency note, and after a year paying 3% is linked to the Australian dollar-yen exchange rate. UBS Warburg was the bookrunner. Triple-As still dominated proceedings, with World Bank announcing two ¥3 billion 30-year trades. CDC IXIS Capital Markets did a ¥500 million 20-year note and a ¥600 million 25-year note. And KfW International Finance did three trades. One was a ¥2 billion 25-year note with Nomura as bookrunner. It has a fixed coupon of 3% for the first year and then is linked to the US dollar-yen exchange rate in the usual power reverse dual currency (PRDC) format. One was a ¥1 billion 30-year deal with Nikko Salomon Smith Barney acting as dealer. The note is also linked to the US dollar-yen exchange rate, but has no initial fixed coupon. The issuer's third note was a ¥2 billion 30-year trade done via Daiwa SMBC Europe. The coupon is fixed for one year and is then linked to the US dollar-yen exchange rate. All three trades are Bermuda callable. Kommuninvest I Sverige went for a ¥300 million 25-year PRDC trade with Nomura as dealer. The coupon is fixed at 5% for year one then is linked to Australian dollar-yen. It also announced a ¥100 million 25-year note with Tsubasa as dealer. Its initial coupon is 6% and then is linked to US dollar-yen.