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One dealer returned to the MTN market on Monday after a break of over four years. And only one issuer that announced a trade has not issued often this year. That was Oresundsbro Konsortiet, with a ¥1 billion (8.32 million) 15-year note, its second trade of the year. Norinchukin International was the bookrunner, leading its first MTN trade since August 1997. The note has a one-off call, and is CMS-linked: the 20-year US dollar rate minus the two-year US dollar rate, plus 93 basis points. Otherwise, it was a day for the established MTN names. Banque International a Luxembourg announced a ¥700 million deal that was subsequently raised to ¥900 million. Credit Lyonnais was the dealer and after a fixed coupon of 2% for the first year it becomes callable and a reverse floater. It has annual step-ups minus the 6m ¥Libor rate. Eksportfinans did a ¥500 million 15-year trade, callable annually. After an initial coupon of 4.1% it becomes a power reverse dual currency (PRDC) structure. KfW International Finance announced three yen trades: a ¥1.5 billion 25-year deal that was increased to ¥2.2 billion, was led by Nomura, has an initial fixed coupon of 4.3% for a year then becomes callable and a US dollar-yen PRDC; a ¥1 billion 30-year note with the same structure and bookrunner, but callable after a year-and-four-months; and a ¥1.1 billion trade that was increased to ¥1.5 billion, was led by Nikko Bank and is a US dollar-yen FX linked trade from the start. Kommunalbanken did a ¥1 billion 20-year trade via Mizuho, and Kommunekredit announced a ¥1 billion 20-year note that was led by Daiwa SMBC Europe and has a first year's fixed coupon of 3.75%. It then becomes callable and an Australian dollar-yen PRDC. New South Wales Treasury Corp, Ricoh Leasing, World Bank, Earls Seven, Daiwa Securities SMBC and Banque et Caisse d'Epargne de l'Etat Luxembourg all went for ¥1 billion notes.

Yen was traded in 27 deals yesterday, for a total value of $189.43 million. And Japanese issuers were responsible for just two, suggesting that investors are happy to look outside their own borders again. Sumitomo Chemical Capital America did announce the biggest trade of the day though, a ¥3 billion ($24.44 million) note that goes out to November next year. The German financial sector gave the most volume. Commerzbank International did a ¥200 million one-year trade, Deutsche Bank announced a ¥100 million 10-year note and KfW International Finance did a ¥2.5 billion 20-year deal and a ¥2 billion 30-year deal. Royal Bank of Scotland kept its run in yen going with an ¥800 million 15-year trade. It was led by Shinkin International and was quickly increased to ¥1.1 billion. The note is callable after six months and semi-annually thereafter, and is has a CMS-linked structure: the 20-year rate minus the two-year rate plus 60 basis points. CDC IXIS Capital Markets announced one of several power reverse dual currency (PRDC) trades in the market yesterday, although its trade has another option. If the chosen FX rate is below a certain level the coupon is payable as a PRDC, if the rate goes above that level the coupon is paid at a fixed rate. The ¥600 million 30-year note is callable after a year and annually thereafter. Kommuninvest I Sverige did a ¥200 million 20-year trade via Mizuho. It has a fixed coupon of 5% for the first year and then becomes callable and a PRDC structured note. Vorarlberger Landes- und Hypothekenbank did a ¥600 million 30-year trade with Nomura as bookrunner. The note is callable after a year and semi-annually thereafter, and has a fixed coupon of 3% before becoming a PRDC. Svensk Exportkredit also did two PRDCs, for ¥100 million and ¥500 million. Abbey National Treasury Services and Bear Stearns went for ¥300 million trades with respective terms of 25 years and three months. Canadian Wheat Board did a ¥1.1 billion trade and a ¥1.7 billion trade, both going out to December 2016. And Credit Agricole Indosuez did a ¥500 million 15-year note and a ¥300 million 30-year note.

Thirty trades were announced in yen yesterday for a total of $240 million. Volvo Treasury did its 26th yen note of 2001. It was a ¥5 billion ($40.74 million) trade with Mizuho as bookrunner. The note goes out to September next year and has a zero-coupon structure. Fellow Swede Svensk Exportkredit did two notes: a ¥1 billion 30-year trade that pays an initial fixed coupon of 5.5%, and a ¥200 million 30-year not with an initial coupon of 4%. KfW International Finance announced four notes, three of which were for ¥1 billion, the other was for ¥1.5 billion. They have terms of 15 years and over. Deutsche Bank was the other German borrower in the market, announcing a ¥700 million 15-year trade, with Deutsche Bank as dealer. Export Development Corp was the only North American issuer doing business. It announced a ¥1 billion 15-year trade via Daiwa SMBC Europe. It has an initial fixed coupon of 2% for a year, then is callable, semi-annually thereafter, and becomes a CMS-linked trade. It is linked to the 20-year US dollar rate minus the 2-year US dollar rate, plus 28 basis points. Linde Finance did its 13th yen note of the year. The ¥1 billion deal was led by Salomon Smith Barney and pays 3m Libor flat for its duration. And SNS Bank Nederland made a rare venture into yen yesterday, for such a busy issuer, with a ¥1 billion 18-month trade. Credit Suisse First Boston was the bookrunner and it is a floating rate note linked to the 3m ¥Libor flat rate. It is also a listed trade.

Zurich Financial Services officially launched this week the long awaited IPO of Converium, its reinsurance unit. The deal followed the resounding success last week of Swiss Re's $3.3bn fundraising exercise. But it is clear that Converium will not be such an easy sell.

Prudential, the UK insurance company, is to launch a £

Repsol-YPF will today (Friday) launch a minimum Eu1bn two tranche transaction, testing investor appetite for the oil and gas company, which is struggling to reduce its debt burden against a background of declining oil prices. The deal will be structured as a minimum Eu500m 18 month floating rate note paying Euribor plus 100bp, and a minimum five year fixed rate bond priced at mid-swaps plus 140bp. The lead managers are BBVA, BNP Paribas, Goldman Sachs, Invercaixa and Merrill Lynch.

Sibneft hopes to issue its $150m-$250m three year bond next week, perhaps as early as Monday according to some bankers. "We are full steam ahead," said an official at Sibneft. "We hope to get the deal off next week. We would have liked to have done it this week were it not for some of our potential buyers having to wait until after Thanksgiving to get the all clear from their New York offices."

Soitec, the French semiconductor wafer manufacturer, joined the trend of issuers taking advantage of investor demand in the convertibles market to raise opportunistic financing this week. The £115m deal, which will finance organic growth, was sold by Morgan Stanley on Tuesday morning.

Market report Compiled by Richard Favis, RBC Capital Markets, Johannesburg

A £250m transaction from Southern Electric Power Distribution (SEDP), an operating subsidiary of Scottish & Southern Energy, highlighted yesterday (Thursday) the strength of the long end of the sterling market and the desperate search for product by the UK investor base. The company conducted a three day roadshow this week with bookrunners Royal Bank of Scotland and UBS Warburg, expecting to launch an issue next week, but, as Gregor Alexander, treasurer of the Scottish & Southern Energy group, told EuroWeek, demand for the bond was so high that the launch process was accelerated.

A £250m transaction from Southern Electric Power Distribution (SEDP), an operating subsidiary of Scottish & Southern Energy, highlighted yesterday (Thursday) the strength of the long end of the sterling market and the desperate search for product by the UK investor base. The company conducted a three day roadshow this week with bookrunners Royal Bank of Scotland and UBS Warburg, expecting to launch an issue next week, but, as Gregor Alexander, treasurer of the Scottish & Southern Energy group, told EuroWeek, demand for the bond was so high that the launch process was accelerated.

Barclays Bank (Miami) has completed a $150m one year USCP back-up facility for CABEI. The risk participation fee is 45bp and upfront fees are 20bp for $20m, 15bp for $10m-$19m and 10bp for $3m-$9m.