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Corporate debt markets continued to rally this week after the recent round of rate cuts, with credit spreads tightening across the board. The receptive environment allowed for several successful transactions, none more so than the Eu5bn five year global bond for the EIB launched off its EARNs programme. Careful premarketing and bookbuilding resulted in a book of Eu10bn for the supranational and the deal was hailed as an unequivocal success. The revival in appetite for corporate debt was underlined by the strong demand for AT&T's jumbo multi-tranche offering denominated in dollars and euros. The US telco raised $10.01bn across four tranches and reportedly drew an order book of $30bn.

rance The Eu400m 4-3/4 year loan for Tele-Invest II SA was signed on Wednesday November 14.

Some bigger-than-usual deals were announced in the yen market yesterday. Nomura Global Funding did a ¥20 billion ($164.47 million) two-year trade, and both Banque et Caisse d'Epargne de l'Etat Luxembourg and Bayerische Landesbank went for ¥10 billion trades. BCEEL's goes out to July next year and pays a fixed coupon of 4%, Bayerische's goes out to March next year and pays 0.6%. Hitachi Asia announced a ¥7 billion two-month deal that pays a fixed coupon of 0.09%. Transpower Finance, the New Zealand electricity company, did its first MTN deal for almost a year. The ¥5 billion note matures in November 2011 and has a fixed part of the coupon of 1.372%. Alliance & Leicester announced its first yen deal of the year via Morgan Stanley. It was a ¥500 million trade that goes out to October 2003 and has a fixed coupon of 0.01%. CDC IXIS Capital Markets did three trades: two ¥500 million deals and a ¥1.1 billion deal. They have terms of 20, 30 and 25 years respectively. Eksportfinans is maintaining its regular presence in the market, and issued a ¥400 million Bermudan non-call-one power reverse dual currency (PRDC) note. It goes out to November 2021, and has an initial fixed coupon of 3%. Kommuninvest I Sverige did a ¥200 million non-call-two PRDC via Kokusai. It also has an initial fixed coupon for the first two years. Svensk Exportkredit also issued a PRDC, and Vorarlberger Landes- und Hypothekenbank did three PRDCs. One was a ¥500 million 20-year deal that was soon raised to ¥700 million. Nomura was the bookrunner and it has a fixed coupon of 5.3% for the first three years then becomes US dollar-yen linked. Nomura led another ¥500 million trade for Vorarlberger, which has a fixed coupon of 4% for the first 16 months and is capped at 4% for the first year. It then becomes a PRDC linked to Australian dollar-yen, and the cap increases by 20 basis points each year. Its last trade yesterday was a ¥2 billion deal with Daiwa SMBC Europe as bookrunner. It has a fixed coupon of 4.5% for the first two years, then becomes a US dollar-yen PRDC and is callable after two years too.

The yen market saw more new names on Friday last week, and, although nine of the 26 trades that were announced came from issuers domiciled outside Europe (more than the average), continues to be dominated by Western European names. ABB Capital did its second yen note of 2001, with a ¥3 billion ($24.67 million) deal that goes out to September 2009. It has a fixed coupon of 1.36% for its duration. Nederlandse Waterschapsbank also went for a ¥3 billion trade. Nomura was the bookrunner of the 22-year deal, and it has an initial coupon of 2.7%. Abbey National Treasury Services announced a ¥500 million 15-year note. It pays 2%, and was the only trade done by a UK issuer. KfW International Finance did a ¥3 billion, a ¥2 billion and a ¥1 billion note. JPMorgan led the first one and it goes out to November 2013. It has an up front coupon of 1% before turning into a CMS-linked trade. The other two were led by Nikko Bank and have initial coupons of 3.5% and 4% respectively. The ¥2 billion deal is then linked to the Australian dollar-yen exchange rate and is callable after 3 years, annually thereafter. The ¥1 billion trade is a bullet and after the initial fixed coupon is linked to the US dollar-yen exchange rate. Kommunalbanken did a ¥500 million trade that goes out to November 2031. Daiwa SMBC Europe was the bookrunner and the note has an initial coupon of 3.8%. NIB Capital Bank also announced a ¥500 million trade, via SG. The note has a reverse convertible structure, also linked to a basket of equities, after an initial coupon of 3%.

The week started quickly in yen, with 44 trades announced yesterday, including a handful of deals from triple-B rated issuers. And as could be expected, most of the triple-B notes came from Japanese-based issuers. Daiwa Securities SMBC announced two ¥500 million ($4.16 million) notes with maturities of 15 and 20 years. DKB Finance (Aruba) did a ¥1 billion 10-year trade, and Nikko Bank (Luxembourg) did a ¥100 million five-month deal via Salomon Smith Barney. Sumitomo Corp Capital Europe announced a ¥3 billion trade, also via Salomon, that goes out to October next year. Reichhold Finance (USA) did its third note of the year, though it is the 10th of the year off the programme, which has Dainippon Ink and Chemicals as an issuer too. Reichhold's note is for ¥8.5 billion and has a term of one month. Salomon was dealer again. Triple-A Kommunekredit did a ¥500 million trade that was quickly increased to ¥600 million via Nomura. It was a Bermuda-callable capped US dollar-yen power reverse dual currency note and matures in December 2021. Banque Generale du Luxembourg announced a ¥500 million 15-year note with HSBC as bookrunner. And Banque et Caisse d'Epargne de l'Etat Luxembourgdid a ¥500 million 10-year deal. It has a fixed coupon of 1%. Toshiba International Finance (Netherlands) did two ¥2 billion notes. And although they have identical maturities of one year, one pays 6.014% and the other pays 0.14%. Canadian Wheat Board did its 20th yen note of 2001. It was a ¥120 million 15-year trade that has an initial fixed coupon of 7%. And the other Canadian issuer in the market was Toronto Dominion Bank. It announced a ¥1 billion deal that goes out to November 2011.

Engineering group ABB Ltd has mandated Citibank (joint bookrunner) and Credit Suisse First Boston (joint bookrunner and facility agent) to arrange its debut credit, a $3bn 364 day revolver. The deal was launched at a bank meeting in Zurich yesterday (Thursday). It carries a margin of 25bp over Libor. This ratchets in line with ABB's Standard & Poor's/Moody's ratings as follows: A+/A1, 27.5bp over Libor; A/A2, 30bp over Libor; A-/A3, 35bp over Libor. ABB is rated AA- by Standard & Poor's and Aa3 by Moody's.

South Africa The $100m one year facility for BoE Bank was launched into syndication on Monday November 12.

Algerian oil company Sonatrach this week secured a $50m loan via the Arab Investments Corporation (Apicorp) and the Arab Investment Company. The loan coincides with intensifying disputes between Opec and Russia that have caused the oil price to plummet. The commodity fell to a low of $17.15 on the NYMEX yesterday evening (Thursday) - a level the market has not seen since 1999.

The European Investment Bank's EARNs programme was revitalised this week when the supranational proved that it could respond to the needs of investors by offering a Eu5bn five year global bond that was priced to clear after a careful premarketing and bookbuilding process. But at the same time, the EIB's management could take heart from the funding level achieved. The re-offer level of around mid-swaps minus 8bp was in line with a group of second tier European sovereigns, inside the borrower's EARNs curve, and almost flat to Kreditanstalt für Wiederaufbau's benchmark issuance.

The European Investment Bank's EARNs programme was revitalised this week when the supranational proved that it could respond to the needs of investors by offering a Eu5bn five year global bond that was priced to clear after a careful premarketing and bookbuilding process. But at the same time, the EIB's management could take heart from the funding level achieved. The re-offer level of around mid-swaps minus 8bp was in line with a group of second tier European sovereigns, inside the borrower's EARNs curve, and almost flat to Kreditanstalt für Wiederaufbau's benchmark issuance.

Colombia * Republic of Colombia

Jumbo loans for European telcos, such as the facility for Wind, are facing tough market conditions, as bankers become wary of their exposure to the sector and are shying away from deals they would normally join. The 20 or so banks that joined general syndication of the Eu5.5bn loan for Wind will be signed in before the end of November.