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The Republic of Bulgaria shocked emerging market bankers yesterday afternoon (Thursday) by announcing that JP Morgan and Morgan Stanley will lead manage a Eu250m three to five year bond issue in the next two weeks - without calling a bidding contest for a deal that was keenly anticipated but not expected to emerge until next year. The deal will be roadshowed late next week with two teams presenting the deal in Frankfurt and Milan next Thursday (November 8), and then London on Friday (November 9). Launch is expected for the following week, provided market conditions are favourable.

The Republic of Bulgaria shocked emerging market bankers yesterday afternoon (Thursday) by announcing that JP Morgan and Morgan Stanley will lead manage a Eu250m three to five year bond issue in the next two weeks - without calling a bidding contest for a deal that was keenly anticipated but not expected to emerge until next year. The deal will be roadshowed late next week with two teams presenting the deal in Frankfurt and Milan next Thursday (November 8), and then London on Friday (November 9). Launch is expected for the following week, provided market conditions are favourable.

After posting worse than expected third quarter results on Wednesday, French telecoms equipment manufacturer Alcatel (Baa1/BBB+) may be downgraded soon by Standard & Poor's (S&P). The firm has already been cut twice this year by Moody's, which is unlikely to take any further decision on its rating until the fourth quarter. However, S&P, which currently maintains a negative outlook on Alcatel, may act more promptly after news of a Eu558m three month net loss versus a Eu297m profit for the same period last year, as well as a further 10,000 job cuts.

The $250m five year term loan for Emirates Bank has closed $25m short. Banks will be signed in to the $225m facility today (Friday). Emirates' new facility has been in trouble since it launched into senior syndication on the Monday before the twin towers in New York were destroyed.

* DePfa Bank Europe plc Keepwell agreement: DePfa Deutsche Pfandbriefbank AG

Croatia BayernLB and Mizuho (DKB and Fuji) have joined the Eu50m deal for Croatian Bank for Reconstruction and Development (HBOR) in senior syndication.

EasyJet is to price a £148m equity placing this morning (Friday), as investors endorse the airline's aggressive plans for expansion. Lead managers UBS Warburg and Credit Suisse First Boston (CSFB) will place 39m shares with investors today at a tight discount to yesterday's (Thursday) closing price of 382.5p. Bankers reported last night that the book was well covered.

Espirito Santo Financial Group (ESFG), the Portugese financial group, completed a Eu150m convertible issue on Tuesday, despite the distractions of Pinault Printemps-Redoute's (PPR) Eu1.4bn issue (see page 21). Launched on the same day as PPR, many said ESFG was unlucky with its timing, but despite the competition it still managed to create enough demand to increase the bond. ESFG went out to the market with an initial size of Eu125m, but demand was so strong that Lehman Brothers, which led the issue, was able to increase it.

South Africa-based oil and gas group Energy Africa this week announced plans to tap the international capital markets. Energy Africa is looking to raise up to $200m. Half of the amount will be made up of debt, with the remaining $100m to be raised from the equity markets.

Citibank, BBVA, Caja Madrid and BNP Paribas have postponed the Eu2.9bn loan for Auna Operadores de Telecommunicaciones (Auna). The Spanish telephony and TV holding company has looked at its need to develop its cable network, and decided to put on hold any expansion plans until next year.

Olivetti will launch its Eu3.9bn combined convertible and equity rights issue on Monday, as it continues its strategy of reducing debt raised from the acquisition of Telecom Italia in 1999. Holders of Olivetti common shares and convertibles will be able to buy one new share or bond for every two shares or bonds held. The new convertible bond will have a coupon of 1.5%, a redemption premium at maturity of 18.3% and an actual yield to maturity of 3.5% gross per year. The conversion period will be between January 22 2002 and December 15 2009.

* ABN Amro Bank NV Rating: Aa2/AA