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The German state of Brandenburg will launch its first benchmark fixed rate bond issue next week with a Eu500m five year deal, beginning its new strategy of diversifying its funding sources into the international debt markets. Brandenburg will join the growing list of German Länder moving away from their domestic markets, through either individual or joint issues. The state will be joined by Hessen, which will be launching its latest international deal, a Eu2bn 10 year issue set to be priced at mid-swaps less 2bp-3bp, via Dresdner Kleinwort Wasserstein, Helaba and Morgan Stanley.

The Republic of Chile has decided to forge ahead with a $500m-$650m 10 year global bond, despite worsening emerging market conditions. Lead managers JP Morgan and Schroder Salomon Smith Barney will begin roadshows in London today (Friday) and plan to price the deal for the Baa1/A- sovereign late next week. Participants are hoping that the deal, which is expected to be priced wider than 240bp over US Treasuries compared with a 215bp spread on its outstanding 2009 dollar bonds, will make a much needed positive statement about the Latin American new issue market as a whole.

* Province of British Columbia Rating: Aa2/AA-

Citibank has been awarded the mandate to arrange the debt facility backing Texas Pacific's Nkr5.8bn buy-out of Norwegian telecommunications group Telenor's directories business Telenor Media. Contesting Citibank were Telenor's financial advisers Credit Suisse First Boston and Deutsche Bank.

Colt Telecom Group, the ailing UK telecoms carrier, has won a £400m lifeline from its major shareholder Fidelity Investments. US mutual fund Fidelity, which owns 47.7% of Colt, has agreed to underwrite an open offer which will ensure that it is fully funded for the foreseeable future. Morgan Stanley is advising Colt on the issue.

* JP Morgan is now marketing the equity tranche of Jubilee, the Eu500m arbitrage CDO it is lead managing for Barclays Bank, securitising European high yield debt. The deal is expected to be closed by the end of the year. * Rabobank and Fortis Bank are expected to launch a Eu1.5bn securitisation in November backed by residential mortgages originated by ASR Bank, part of the insurance-based group AMEV Stad Rotterdam that was taken over by Fortis last year.