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Lafarge, the world's largest cement producer, last Friday (October 26) bucked the trend for triple-B rated cyclical corporates since September 11 with the launch of a highly successful dual currency benchmark. The Eu1.4bn equivalent offering, which was the Baa1/BBB+ French company's largest fundraising and its first since the Eu15.5bn acquisition of Blue Circle earlier this year, comprised a Eu1bn seven year tranche, priced at 145bp over mid-swaps, and a £250m 10 year offering 220bp over Gilts. Both tranches were increased, from Eu750m and £200m, respectively, and were oversubscribed at launch.

Diversified US industrial Tyco International is planning benchmark transactions in the euro and sterling markets, following roadshows in continental Europe and the UK next week. Deutsche and Schroder Salomon Smith Barney will lead the euro tranches and Goldman and HSBC the sterling bonds. The market is expecting to see three and seven year euro tranches and medium and long term maturities for its debut in the sterling market.

HSBC (bookrunner) and Royal Bank of Scotland (facility agent) have launched a £200m revolving credit for UK high street retailer Debenhams plc. The five year deal carries a margin of 45bp over Libor. The deal is being targeted at close relationship banks of the borrower. Proceeds of the deal are to refinance the £300m demerger facility signed for Debenhams in 1998. That deal carried a margin of 25bp over Libor. Mandated arrangers were Greenwich Natwest, Barclays, Royal Bank of Scotland (bookrunner) and Midland Bank.

UPC, the Dutch telecoms company that floated its Priority Telecom unit in September, has rejected a unexpected claim that it owes some of the unit's former shareholders $200m. UPC was forced to list its business telecoms subsidiary to avoid having to pay $200m to Cignal Global Telecommunications, which it bought last year in exchange for 16% of Priority Telecom. As part of that deal, UPC promised to pay the former Cignal shareholders a penalty, in either cash or shares, if it did not float Priority by October 1 2001.

Globals * Abbey National

US dollar was the second busiest currency on Friday, just behind yen. Volumes were small though as 15 trades were done for $593.95 million. Deutsche Bank closed a self-led $150 million MTN that matures on November 30 2002. It is a credit-linked note that is linked to the OECD basket. Caisse Nationale de Credit Agricole also closed a deal for $150 million. The note pays interest quarterly and reaches out to November 14 2011. Rabobank International self-led a trade for Rabobank Nederland. The $20 million note is a non-call two-year. Fellow Dutch issuer, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden, did a seven-year $5 million MTN that pays interest singularly. UBS (Jersey) closed two $10 million trades. One of the notes is for five years and the other for eight years. Both notes carry final coupons of 6.750%. And Dexia Credit Local de France did a five-year $10 million MTN that pays interest on a semi-annual basis.

* Den norske Bank ASA Rating: A1

CIBC World Markets will today (Friday) begin marketing the second public residential mortgage securitisation to come from Switzerland, a Eu350.5m deal originated by the state owned Zürcher Kantonalbank. Despite the recognised quality of Swiss mortgage assets and a legal system that is open to asset backed deals, this is only the second Swiss mortgage deal. Its predecessor was also the first Swiss public transaction, Tell Mortgage Backed Trust 1998-1, a Sfr250m mortgage deal executed by Swiss Bank Corporation in 1998.

CIBC World Markets this week closed the second securitisation of US distressed and non-performing loans it has arranged with Patriarch Partners, a specialist investment fund. The first transaction, completed at the end of December 2000, parcelled $1.5bn of distressed commercial and industrial loans sold by FleetBoston Financial Corp.

Unión De Créditos Inmobiliarios (UCI), the Spanish mortgage lender owned by Banco Santander Central Hispano and BNP Paribas, last Friday launched its latest securitisation, once again lead managed by its owners. The triple-A notes on the deal priced at the same level as other recent comparable European mortgage deals indicating that the market has found its level for triple-A mortgage backed bonds.

Banca Lombarda e Piemontese this week launched a Eu210m semi-synthetic collateralised debt obligation backed by US and European corporate bonds and credit default swaps, via BNP Paribas. Cidneo Finance, a static arbitrage vehicle, is the second Italian semi-synthetic transaction to suffer wider pricing due to the events of September 11, which have pushed out spreads on CDO paper, while also reducing the value of the underlying assets.

Bipielle Ducato, one of Italy's largest non-captive consumer credit companies and part of the Banca Popolare di Lodi group, this week launched a Eu498m securitisation backed by unsecured personal and auto loan receivables. Lead managed by JP Morgan, Crédit Agricole Indosuez and Caboto-Gruppo IntesaBci, the deal followed a glut of Italian ABS issues and priced wide of comparable Italian consumer loan deals.