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Transactions increased: * European Investment Bank

National Power Corp (Napocor), the Philippine power utility, has cancelled its $500m seven year bond issue, after what bankers described as "complete indifference by Asian investors towards the deal as a result of uneconomic pricing levels". And in another twist to the Napocor story, the sovereign is now considering launching a bond in its own name so that it can on-lend the proceeds to the indebted utility. The transaction would probably be the same $500m size.

The UK's FSA is to launch a probe into split capital investment trusts, as allegations of 'magic circle' investing and fears of trust collapses continue to dog the sector. John Tiner, a managing director at FSA, told a conference this week that "there is a meaningful minority of [split capital] funds which are cause for concern".

* Enterprise Inns plc Rating: Baa2

* Philip Morris Capital Corp Guarantor: support agreement from Philip Morris Companies Inc

* General Electric Capital Corp Rating: Aaa/AAA/AAA

French utility Suez braved the tempestuous conditions for credits this week with a Eu1bn seven year euro bond issued via its new GIE Suez Alliance entity, playing on its defensive qualities to offer some hope to the barren corporate market. The deal, led by Citigroup/SSSB, Deutsche Bank and Morgan Stanley, was a great success, coming flat to secondaries at 68bp over mid-swaps and drawing in over Eu1.7bn of orders.

Another hurdle was cleared yesterday (Thursday) on the slippery path to commercial and financial close for the London Underground Public-Private Partnership scheme. Stephen Byers, the UK's transport secretary, announced in the House of Commons late yesterday that the government would proceed with the PPP after being satisfied with initial reports from PricewaterhouseCoopers and a subsequent independent assessment by Ernst & Young that the PPP solution represented value for money against public sector alternatives.

Yokohama Finance (Europe) has been dropped as the arranger and as the dealer off Yokohama Finance (Cayman) ¥300 billion ($2.24 billion) subordinated guaranteed Euro-MTN programme. Nikko Salomon Smith Barney, already on the dealer panel, is the new arranger. The programme was signed on November 1 1995 and has $644.56 million outstanding off nine trades. The issuer has not traded since November 2000 when it closed a 10-year ¥1 billion note.

The first fresh loan mandate of the year for a Turkish financial institution is set to be awarded next week, assuming that the tough bargaining still under way this week is successfully concluded. Bankers expect that Türkiye Garanti Bankasi will be the first to award a mandate to tap the market. The bank plans to refinance its Eu350m facility signed last March. That deal paid a margin of 60bp over Euribor and was arranged by 18 strong bank group.

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.