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DaimlerChrysler has attracted strong demand for a Eu400m five year issue, which was launched via joint bookrunners Bayerische Landesbank (Balaba) and Caboto-Gruppo IntesaBci. This is the auto company's first transaction since March, when it brought a Eu6.5bn multi-tranche offering. "It was a dream of an issue," said Stephan Thiele, head of origination and syndication at Balaba. "DaimlerChrysler Canada Finance is a rare borrower with a standalone rating, so lines are available."

Danish Ship Finance (Danmarks Skibskreditfond) signed a $1 billion Euro-MTN programme on Wednesday, June 27, with Merrill Lynch and JP Morgan Chase as the arrangers. It is rated Aa3 by Moody's and is the highest-rated shipping company to sign a Euro-MTN programme. Marianne Okland, responsible for the Nordic region at JP Morgan Chase, says: "It's a complicated story to sell to investors. Shipping-related credit is not an industry that often comes to the bond markets. In terms of sector diversification in a portfolio, it's a fantastic opportunity, plus with a rating you hardly ever see, it also offers credit protection." The borrower has been considering setting up the programme for some time. Bo Jagd, managing director at Danish Ship Finance, explains that conditions were finally right. He says: "We have very good access to funding in the Danish market, but we felt the time was right to establish the Euro-MTN programme so we can work on the entire yield curve and reach names that do not normally fund us." Per Schnack, treasurer at Danish Ship Finance, says the company will still fund itself in the domestic market: "The Danish market is second to none when it comes to long-term financing. But we may look to the Euro-MTN market for our short- and medium-term needs. Because funding in Denmark was so good, we put off setting up the programme until now." He adds: "We will be flexible on maturity and structure, but when it comes to price, we may not be so flexible." There are no plans for an inaugural trade - a decision on this will be made this summer. The borrower's funding need is euro1 billion ($860.52 million) per year. Danish Ship Finance foresees distribution needs in the Nordic region, with its choice of two Nordic banks on the dealer panel. Den Danske Bank and Nordea are joined by Deutsche Bank, Morgan Stanley and the arranger on the panel.

At the roadshow for its forthcoming jumbo offering, Deutsche Telekom (DT) this week capitalised on the positive tone surrounding its credit by reassuring investors of its commitment to debt reduction. DT officials said the company intended to reduce its debt from Eu69bn to Eu50bn by the end of 2002 through the sale of property and cable assets and a partial flotation of cellphone division T-Mobile.

Hungary Mandated arrangers BNP Paribas, CIBC and Dexia have launched the Eu350m 7-1/2 year debt facility for Vivendi Telecom Hungary (VTH) into syndication.

Earls has concluded a Z51.10 million ($12.93 million) note to be issued on July 16. The note pays interest singularly and matures on April 16 2006. The issuer's seven other trades this year have all come in yen.

* Entreprise Minière et Chimique Rating: AAA

The Greek government yesterday (Thursday) launched a Eu750m exchangeable into Hellenic Telecommunications Organisation (OTE), the Greek telecoms operator. The deal, which is expected to start trading today (Friday), will result in the government losing its majority ownership of OTE.

The Federal Reserve Board disappointed the fixed income market by lowering interest rates by only 25bp on Wednesday. Treasuries sold off for the remainder of the week and the dollar yield curve flattened sharply. Swap spreads were bid up at the end of the week, closing at around 85bp in five years and 87bp at 10 years. However, to some dealers, swap spreads look vulnerable at these prices. The next few weeks are seen as a last chance for borrowers before rates move outside the current trough and the summer lull begins. If there is a period of renewed issuance, the swapping of new debt should put pressure on swap spreads.

The latest figures released by the Centre for Management Buy-outs show that in 2000, Germany surged ahead of the rest of continental Europe in terms of buy-out volume. But the authors of the report suggest that there is still great potential for growth in the market. The leap in volume, according to the report, is largely due to a number of jumbo transactions, which have accounted for more than 75% of the German market by value.

Harsco Corporation (Harsco) has signed a euro250 million ($215.13 million) Euro-CP programme. The arranger is The Royal Bank of Scotland. The borrower is rated A2 by Standard & Poor's and P2 by Moody's. Harsco processes waste materials and also sells other products for the construction industry. The dealer panel is Citibank, NatWest Global Financial Markets and the arranger.

Hamburgische Landesbank Girozentrale's sixteenth note of 2001 is a ¥500 million ($4.09 million) trade that matures in July 2021. It has a final coupon of 3%. Daiwa SCBM was the bookrunner, and the note is callable annually with a power-reverse dual structure attached. Stefan Zegar, part orf the Euro-MTN desk at the issuer, says: "We like the yen market because it is very flexible and there are a lot of structures available."

Recent predictions for the growth of the Hungarian forint in the Euro-MTN market are starting to bear out. Two new trades take the total of forint trades up to 11 so far this year. Only six forint trades have been made previous to 2001. European Bank for Reconstruction and Development is set to issue a Ft20 billion ($70.24 million) MTN on July 5. The one-year note pays interest singularly and has a final coupon of 9.250%. HypoVereinsFinance has gone for a three-year Ft10 billion ($35.12 million) note where the interest is paid annually. The final coupon is 9.000%.