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The Republic of Bulgaria stormed to its long awaited debut in the Eurobond market on Monday with an opportunistic Eu250m 5-1/4 year issue that attracted over Eu1.1bn in orders. Lead managed by JP Morgan and Morgan Stanley, the deal attracted a flood of orders from institutional investors desperate to park their growing cash piles in sovereign emerging markets credits - and especially rare EU convergence assets - that are not linked to Argentina.

The Republic of Bulgaria stormed to its long awaited debut in the Eurobond market on Monday with an opportunistic Eu250m 5-1/4 year issue that attracted over Eu1.1bn in orders. Lead managed by JP Morgan and Morgan Stanley, the deal attracted a flood of orders from institutional investors desperate to park their growing cash piles in sovereign emerging markets credits - and especially rare EU convergence assets - that are not linked to Argentina.

* Rabobank Nederland NV Rating: Aaa/AAA

Two debut hybrid capital transactions for UK financial institutions this week demonstrated the vitality of the sterling market, and the depth of demand for high yielding paper at the long end. The first, insurance company CGNU's multi-currency hybrid capital issue led by Barclays Capital, Lehman Brothers, Merrill Lynch and SG, raised £1.2bn equivalent, the £700m sterling tranche setting a record for subordinated issuance in the market. It was also the first public issue by an insurer in the Euromarkets since the events of September 11, which sent spreads on European insurance paper out between 20bp and 34bp within a week.

Chesapeake Corp, the specialty packaging company, took advantage of strong investor demand to increase its issue of senior subordinated notes from £90m to £115m this week. The borrower was also able to price its deal at the tight end of the range, moving from 11% to 10.5% during premarketing, before finally settling at 10.375%. Joint bookrunners and lead managers were Credit Suisse First Boston and Goldman Sachs.

Colombia and Pemex this week sold $1.3bn of bonds and Uruguay will come to market today (Friday) with a $250m deal via Deutsche Bank and Merrill Lynch to take advantage of a wave of investor buying in the Latin bond market. Pemex sold $750m of 10 year bonds into the investment grade market on Wednesday via Goldman Sachs and Lehman Brothers, and Colombia followed with a $500m 10 year benchmark offering underwritten by Credit Suisse First Boston and JP Morgan. Both deals traded strongly in the aftermarket.

Continental, the German auto-part supplier rated Baa2/BBB, will launch the debut public bond deal off its Eu1bn EMTN programme next week. The firm is roadshowing with lead managers Dresdner Kleinwort Wasserstein and Merrill Lynch in Germany until Tuesday, with launch expected soon after. Bankers suggest the Eu500m plus, seven year fixed rate issue should be priced at around 250bp over mid-swaps, with possibly the largest rating sensitive step-up seen in the market. The highest so far was 125bp, but should the rating agencies downgrade Continental to sub-investment grade, the step-up could be 150bp.