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Abu Dhabi The general syndication of the $1.6bn Shuweihat independent water and power project (IWPP) project financing is progressing well.

Merrill Lynch this week launched 13 new exchange traded funds (ETFs) that will track the FTSE Global Sector indices on the Deutsche Börse. The funds are the latest addition to a rapidly growing sector. Manooj Mistry, the ETF product manager at Merrill Lynch, explained that the funds were still a relatively new concept in Europe but that much was expected from the product. "Merrill Lynch first came to the European market two years ago with Stoxx 50 and EuroStoxx 50 trackers," said Mistry. "These two are now traded on six exchanges and there are almost 80 or 90 ETFs available in Europe amounting to nearly Eu6bn under management."

* Corporate bond trading site Coredeal MTS has beefed up its management board with the appointment of economist Lord David Currie as chairman and Angelo Proni as chief executive. "Coredeal MTS represents a very exciting business proposition creating a liquid trading vehicle for corporate debt in Europe, building on the success of MTS in the government bond market in the eurozone," said Currie, dean of the City University Business School.

Israel A State of Israel treasury team has been meeting investors in Europe this week, in an attempt to gauge demand for a Eu500m bond that will be led by Merrill Lynch and UBS Warburg.

The Financial services sector continued to dominate activity in other currencies today. Fifteen trades were closed in other currencies and 13 of these were done through the financials. The largest trade of the day came from Council of Europe Development Bank. It closed the day's only Canadian dollar note: a C$100 million ($62.86 million) 10-year MTN that pays a coupon of 5.25 % and was issued at a price of 98.073%. TD Securities led the note. Volkswagen International Finance closed the next largest trade: a Nkr400 million ($44.04 million) trade that matures on March 12 2004. The deal pays a coupon of 7.25% and was issued at a price of 101.988%. Fortis Bank was the lead manager. Nine trades were closed in Hong Kong dollar. Rabobank (Nederland) closed the longest note: an HK$112 million ($14.36 million) two-year trade that was led by JPMorgan. The note pays an annual coupon of 3.97% and cannot be called before maturity. Societe Nationale des Chemins de fer Francais also saw opportunities at the long-end and issued an HK$72 million eight-year trade that offers a coupon of 6.21%. NBNZ International issued an HK$230 million three note but the rest of the day's Hong Kong dollar trade have maturities of less than two months.

France Pernod Ricard is considering whether to launch a convertible bond to refinance its acquisition of part of the drinks business of Seagram in December 2000. A spokesperson for the company confirmed that part of a Eu5.1bn loan taken out to finance the acquisition expires in March, but that a refinancing method had not yet been decided (apart from a Eu2.5bn loan that is being syndicated - see Syndicated Loans). "We have confirmed that we will do it [a convertible bond issue] but we have no comment further than that," the spokesperson said.

Thirty deals came in other currencies. And the range of currencies was quite large. Goldman Sachs closed the largest trade of the day: a £

Stock in Orange and KPN is expected to hit the market over the next few months after the two telecoms operators concluded separate negotiations over shareholdings. On Tuesday, France Télécom said that it had reached an agreement with E.ON, the German utility, over its $865m stake in Orange. E.ON acquired the 103m shares when France Télécom purchased its holding in Orange Communications Switzerland in November 2000.

Nineteen trades were closed in other currencies but only three currencies were transacted. Hong Kong dollar was the most popular currency choice with 19 trades closed. Barclays Bank issued the largest note in Hong Kong dollar: an HK$100 million ($12.82 million) one-month note. Credit Agricole Indosuez self-led three MTNs. The largest was an HK$5 million trade that goes out 6 weeks and will be issued on March 28 2002. HSBC Investment Bank (Netherlands) was also active in the currency and self-led three HK$80 million trades that go out to April 2002. The issuer also self-led the day's only Singapore dollar issue: a S$10 million ($5.45 million) six-week trade. Compagnie de Financement Foncier went out the furthest in Hong Kong dollar with its HK$62 million nine-year MTN that pays a coupon of 6.25%. Eksportfinans also saw opportunities at the longer end and issued an HK$71 million note that goes out to February 2010 and offers a coupon of 6.24%. The largest volumes came in sterling: $223.91 was closed off 4 trades. Credit Lyonnais Finance (Guernsey) closed the largest trade: a £

Peru yesterday (Thursday) launched its first global bond, a $500m 10 year offering which is part of a Brady bond exchange that could create a $1.5bn benchmark for the sovereign. The deal, lead managed by JP Morgan and Citigroup/Salomon Smith Barney, will have a maximum cash component of $500m and a maximum Brady bond exchange portion of $1bn.

* Inter-American Development Bank Rating: Aaa/AAA/AAA

Petrobras, the Brazilian oil concern, won approval from investors and underwriters alike this week when it successfully sized, priced and executed a $400m five year political risk insurance (PRI) backed issue, its third such structured deal in the past 12 months. The transaction, lead managed by Morgan Stanley and UBS Warburg, was officially announced as a $300m offering, although Petrobras's original hope was to raise $500m.