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Despite a cautious mood in the equity capital markets this week, the Eu4bn IPO of Snam Rete Gas is moving ahead as planned. Eni, the Italian oil company, reiterated its intention this week to proceed with the IPO Snam, its gas distribution network. A banker close to the deal said that "no one has a crystal ball as to what will happen in the market, but it is clear that investors have appetites".

The European loan market is facing a glut of utility deals from issuers profiting from investor appetite for the safest of credits. Mandated arrangers Deutsche, Dresdner Kleinwort Wasserstein, HSBC and JP Morgan are holding a bank meeting on Monday for the loan to Powergen.

The European loan market is facing a glut of utility deals from issuers profiting from investor appetite for the safest of credits. Mandated arrangers Deutsche, Dresdner Kleinwort Wasserstein, HSBC and JP Morgan are holding a bank meeting on Monday for the loan to Powergen.

* Bancaja International Finance Guarantor: Bancaja

* BNP Paribas Capital Trust III Rating: A2/A/A+

Euro trading was steady yesterday with maturities largely towards the short-end. Fiat Finance continued its current daily issuance with a euro100 million ($90.32 million) plain vanilla trade that was self-led. The note has a maturity of just one-week and a final coupon of 3.919%. In contrast, fellow Italian issuer ENEL closed the longest-dated trade - a euro75 million MTN that goes out to December 19 2031. The note carries a final coupon of 10.000%. Caisse Centrale du Credit Immobilier de France closed two trades. The smaller was a euro2.50 million note that carries an annual coupon of 6.75%. The other trade was a euro10 million MTN. Both notes are linked to the performance of the Nikkei 225 index so that the redemption is 100% minus the performance of the index. If the index under-performs, the redemption is 100%. Both notes mature in November 2009. Other French issuers were also busy Caisse Nationale Des Caisses d'Epargne et de Prevoyance did a one-year euro35 million plain vanilla MTN that pays interest on a monthly basis. And BNP Paribas closed notes for euro4 million and euro7 million. Spanish issuers also made their mark. Bancaja International Finance did a three-year euro500 million MTN that pays interest on a quarterly basis. And Sabadell International Finance issued a three-year euro50 million MTN. SNS Bank Nederland came to the market with a euro2.50 million fixed-rate plain vanilla note that carries a coupon of 5.000%. The note matures on December 21 2007. The German brokerage firm, Eurobond Sales, placed the note.

Euro was being traded frantically as last week drew to a close. Friday saw 28 trades closed for $1.71 billion equivalent. Fiat Finance & Trade finished a busy week's trading for them with a 10-year euro650 million ($591.56 million) MTN. The note carries a final coupon 4.400% and pays interest on an annual basis. And fellow auto issuer, Volkswagen Financial Services closed a euro100 million note that pays interest quarterly. Dutch issuers had a strong day's trading with four trades. NIB Capital Bank closed a three-year euro4 million note. The note is equity-linked and has a performance coupon of 2%. CDC IXIS Capital Markets was the bookrunner. Essent Nederland concluded a euro50 million note that carries a final coupon of 3.510%. The note was the shortest-dated trade issued, maturing on April 18 next year. Fortis Finance is set to issue a two-year euro50 million MTN that pays interest quarterly. And Boats Investments (Netherlands), closed a euro60.07 million note. The note goes out to December 17 2040. Svensk Exportkredit was the busiest issuer trading three notes for euro2 million, euro2.25 million and euro2.75 million. All three notes are reverse-convertibles with a coupon of 2.000% and have a tenor of three years. BNP Paribas also issued three notes for euro1 million, euro5 million and euro10 million. The smallest note is for six-years, while the other two mature next year - on November 7 and December 21. Merrill Lynch lead-managed a three-year euro125 million FRN for Sparebanken Rogaland. And Landesbank Sachsen closed two euro200 million MTNs. Both notes pay interest on a quarterly basis.

Euro trading reverted to its usual levels after a frantic day's business on Friday. Maturities were largely at the short- to mid-term but a couple of issuers looked for longer-dated trades. Royal Bank of Scotland closed a euro500 million ($452.87 million) MTN that goes out to May 10 2013. The note carries a final coupon of 6.000%. And European Credit (Luxembourg) did a euro15 million note that reaches out to October 19 2011. The note has a final coupon of 4.950%. Deutsche Bank was the busiest issuer, closing three trades for euro8 million, euro15 million and euro18 million. All three notes pay interest quarterly and have a maturity of five years. The credit-linked notes are tranches that are linked to a large portfolio. Deutsche Bank was also active through its special purpose vehicle, Eirles, closing a euro13.70 million note that matures on November 3 2003. The note has a final coupon of 5.400%. And Fiat Finance & Trade kept up its current high level of euro issuance with a euro30 million MTN. The note pays interest singularly and matures on December 20 of this year. Unibanco - Uniao de Bancos Brasileiros did two trades for euro0.15 million. One matures on April 17 2002 and the other on October 17 2002. ENEL Investment Holdings closed a five-year euro150 million MTN. The note pays interest on an annual basis and carries a final coupon of 4.625%. And Swiss Re Financial Products did a euro50 million trade that pays interest semi-annually and matures on April 23 of next year.

When Fannie Mae prices its five year Benchmark next week, it will issue an additional 25% to its own account. The bonds will be held in a sub-account at the Federal Reserve Bank of New York and will be available for borrowing by dealers under Fannie's new repo lending facility. To make its securities easier to borrow in a squeeze, the agency is to open a half hour auction at 11:30 New York time every morning, allowing dealers to bid for its securities. Although most auctions are likely to come and go without any bids, the facility will be there to provide collateral. Fannie Mae will become the lender of last resort for its own securities.

Euro trading closed the week on a high with 14 trades - four of which came from Eksportfinans. The issuer closed two trades for euro2.75 million ($2.47 million) and two trades for euro4 million. The separate notes make up one large deal that is broken down into four tranches. All the notes are credit-linked. One of the euro2.75 million trades matures on August 30 2008. The other three issues reach out to August 2011. Fellow Norwegian issuer, Union Bank of Norway, did a five-year euro50 million MTN that pays interest quarterly. Vivendi Environnement closed the largest trade - a euro500 million note that has a tenor of four years. The note pays interest annually and has a final coupon of 4.750%. Banque Internationale a Luxembourg closed the shortest-dated trade - a euro3.70 million note that matures on January 25 of next year.

Just ten euro trades were closed yesterday but some high volumes were seen. Landesbank Rheinland-Pfalz closed a euro500 million ($451.43 million) FRN via Merrill Lynch. The note has a tenor of three years. Westfalische Hypothekenbank also looked for a three-year maturity, closing for euro250 million. And ABN Amro Bouwfonds Nederlandse Gemeenten did a ten-year euro150 million note that carries an annual coupon of 5.270%. Fiat Finance & Trade continues to trade in euro - yesterday with a three-year euro33 million MTN. The note has a coupon of 4.840% and is paid on an annual basis. JPMorgan was the bookrunner. BNP Paribas were not trading but did lead-manage a euro15 million trade for Anglo Irish Bank. The note has a maturity of three-years. Also looking for a tenor of three years was NIB Capital Bank who did a euro4 million note via CDC IXIS Capital Markets. The note pays a coupon of 2.000% annually and the final payoff is linked to either the Euro360, the S&P 500 or the Swiss market index. Some issuers looked for shorter maturities. Gas Natural closed a one-year euro30 million MTN. Banque et Caisse d'Epargne de l'Etat Luxembourg also went for a one-year trade for euro11 million. And Morgan Stanley's financial repackaged vehicle, ELAN, did a euro50 million note that matures on February 16 2003.

Argentina has taken what some fear are its first steps towards default by planning a local debt swap of as much as $14bn of old bonds at below market rates.