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Sumitomo Metal Industries has dropped Sumitomo Finance as a dealer off its $2 billion Euro-MTN programme. The programme was set up in 1994 and Goldman Sachs arranged it. The borrower has issued 19 yen trades off the facility. Sixteen of the notes are still outstanding and these are worth $291.78 million.

Two convertibles in the pharmaceuticals sector gave some life to the equity markets this week, with both transactions proving popular with investors. Teva Pharmaceuticals Healthcare sold its $300m convertible on Wednesday, with UK-based Shire Pharmaceuticals choosing to sell its $350m deal after the close in New York on Tuesday.

Tokyu Corporation has increased the amount of its ¥100 billion ($837.51 million) Euro-MTN programme to ¥200 billion. The arranger off the programme is Mizuho and the co-arranger is Tokyo-Mitsubishi. The programme was signed in 1996 and has 56 trades outstanding, which amount to $728.88 million.

A “double time bomb” threatens the European convertibles market, according to research published by Martin Haycock, head of European convertibles research at UBS Warburg, this week.

A “double time bomb” threatens the European convertibles market, according to research published by Martin Haycock, head of European convertibles research at UBS Warburg, this week.

Bank of Scotland is set to launch the £70m LBO loan for Albion Chemicals Ltd in the next two weeks. Albion is a management buy-in vehicle established for the acquisition of Hays plc's non-core chemical activities, by Peter Savage. The loan is split between a £50m seven year amortising 'A' loan, a £10m eight year bullet repayment 'B' loan and a £10m seven year revolver. The pro rata tranches carry a margin of 225bp over Libor. The margin on the 'B' loan is 275bp over Libor. In addition the revolver pays a commitment fee of 75bp. Hays plc's chemical business profits for the year to end June 2000 were £17.67m. Barclays, Dresdner Kleinwort Wasserstein (joint bookrunner), Goldman Sachs (joint bookrunner) and HSBC will sign the dual-tranche Eu3.5bn acquisition loan for Gallaher today (Friday). The leads have brought in a 20 strong banking group. Momentum for the deal picked up following some slow responses in syndication, marked down to the holiday period and the borrower's problematic business sector. The loan is split between two facilities, a Eu2bn and a £900m facility, which are then divided into three tranches: an 18 month tranche: a three year tranche and a five year tranche. The longer dated tranches will be used to refinance facilities of the two companies. The short term tranche is to finance the acquisition. The margin is 110bp out of the box with a 20bp utilisation fee. The deal supports tobacco group Gallaher's purchase of Austria Tabac.

United Overseas Bank (UOB) has fulfilled market expectations by announcing plans to debut with a subordinated deal of an unprecedented maturity in the domestic market. The transaction will back its S$10bn ($5.73bn) cash and stock offer for Overseas Union Bank (OUB). JP Morgan and Merrill Lynch, together with UOB Asia itself, will joint lead manage a S$750m 15 year non-call 10 tier two sub debt issue, which has the potential to increase to S$1bn.

Globals * Freddie Mac

Freddie Mac and Federal Home Loan Banks were responsible for two huge trades this week. Freddie Mac closed its eighth $5 billion note this year. The non-syndicated trade goes out to 2004 and pays a final coupon of 4.5%. Freddie Mac has also issued three $6 billion trades this year. And Federal Home Loan Banks issued a $1.75 billion note that matures in 18 months. European Investment Bank closed the longest-dated trade of Friday. The $87 million note goes out to 2021. KfW and IFC were in the six-year sector. UBS Warburg led IFC's syndicated $250 million six-year note. There were six co-leads. The note pays a final coupon of 5.375% and has a redemption price of 100%. KfW's $25 million note pays a final coupon of 6.125%.

US dollar took 32% of the market yesterday, with 21 trades. The maturities were mainly in the mid-term sector, ranging between one year and five years. But Sigma Finance Corp issued six $1.67 million 10-year trades, all due on August 15. Twenty-eight of the issuer's 35 trades have been in US dollar and 12 of these mature in 2011. And HSBC Bank USA was the only borrower in the one-month sector, with $100,000, $300,000 and $350,000 notes, all due on August 24. Among the mid-term borrowers was Dorada corp with a $21.15 million one-year note that pays interest quarterly and a generous coupon of 15.410%. It is the borrower's 15th note this year. Seven of its 15 trades had Merrill Lynch as bookrunner. Northern Rock's $50 million note also has a quarterly interest payment frequency and it goes out to 2003. GMAC made an appearance in the market with a $98 million three-year note that pays 5.145% interest. The borrower has issued in seven currencies this year, but has stuck to US dollar for its three- to five-year funding. Den norske Bank closed a $300 million three-year FRN. And Westpac Banking Corp's $20 million note goes out to 2006. Joining it in the five-year maturity bracket were Nippon Oil Finance (Netherlands) and Royal Bank of Scotland.

The 23 trades announced in US dollar yesterday made up almost half the market and the longest maturity went out as far as 10 years. HSBC Bank and HSBC Investment Bank closed five trades between them in the currency. The smallest was a $200,000 five-year note that pays a final coupon of 5% and pays interest semi-annually; and the biggest was a $20 million 50-day trade. Other borrowers at the short end are Unibanco - Uniao de Bancos Brasileiros and Rheinhyp Rheinische Hypothekenbank. Unibanco, rated B2 by Moody's, was the lowest credit to issue in US dollar yesterday. It closed a $1 million two-month trade. And Aa3-rated Rheinhyp closed a $80 million one-year note that pays a final coupon of 3.65%. The longer-maturity sector was the domain of the triple-A credits. Rabobank Nederland closed a $20 million five-year note that pays interest quarterly. And triple-A rated CDC IXIS Capital Markets also closed a non-syndicated $20 million note lead managed by Salomon Smith Barney. Two of the 23 notes were FRNs and these were issued by Aa3 names Eni Coordination Center and Bank of Nova Scotia. Eni, the Italian energy utility, closed a $30 million two-year trade, lead managed by Barclays Capital. And Bank of Nova Scotia closed a $500 million syndicated deal, led by Barclays Capital, Deutsche Bank and UBS Warburg. The note was issued at 99.963% and Tokyo-Mitsubishi and ScotiaMcLeod were also involved on the deal as co-lead manager and co-manager respectively.

Following the mid-august holiday in most of Europe yesterday, trading was very quiet. Just 55 new trades were announced on MTNWare, compared to the usual volume of between 80 and 110. And of the 55 trades, 22 were denominated in US dollar, making up 35% of the market. All the US dollar maturities were six months or longer. Sumitomo Bank International Finance was at the short end with a $3 million six-months note and Westland/Utrecht Hypotheekbank closed a one-year $13 million trade that pays interest quarterly. Also in the one-year sector was Volkswagen Financial Services. JPMorgan led the $45 million trade. Union Bank of Norway issued a $30 million three-year note that pays a final coupon of 4.975%. The six-year sector was dominated by HSBC Bank USA. It issued seven six-year notes, all due on August 17, with amounts between $300,000 and $4.76 million. At the long end Landwirtschaftliche Rentenbank issued two trades for $18.21 million and $18.41 million. Both mature in 2011. And SPV conduit ELAN issued a $2.5 million 12-year note. ELAN is an issuer off Morgan Stanley's multiple issuer programme.