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  • Germany Infineon has started premarketing for its Eu1.5-2bn capital increase, led by Goldman Sachs. The deal is expected to be tough, as Infineon's share price has fallen by nearly 50% since April, and the company announced last week that it expected to make a Eu600m loss for the quarter.
  • Croatia Fitch has upgraded the Republic of Croatia to BBB- from BB+. The agency noted the progress made by the government in clearing K8.4bn of K9.5bn domestic debt arrears, its new IMF agreement, and recent legislation that will cut the public sector wage bill by 10%.
  • The Norwegian krone market continues to provide arbitrage possibilities for a variety of borrowers. Not only does the currency provide funding at attractive levels at the moment, but investors are also pulled in by the considerable pick-up over euro assets. At the same time, the currency is regarded as a proxy for the euro. General Motors Acceptance Corporation (GMAC) issued a Nkr500m 8.125% EMTN due 2003 via Fortis Bank which was swapped to floating rate dollars, according to bankers.
  • * Ford Motor Credit Co Rating: A2/A/A+
  • High grade bond investors swept up paper from Petrobras's $500m 10 year bond issue this week, once again demonstrating the enormous popularity of political risk insurance (PRI) bond structures for certain Latin American borrowers. The deal, led by UBS Warburg, was almost six times oversubscribed and went almost entirely to high grade bond investors dazzled by the large pick-up the deal provided over comparably rated Baa1 paper in the market.
  • * European Investment Bank Rating: Aaa/AAA/AAA
  • * Deutsche Genossenschafts-Hypothekenbank AG Rating: AAA/AAA (S&P/Fitch)
  • Rio Tinto, the UK-based metals and mining company, and Walt Disney both tapped into strong US demand for high quality infrequent issuers this week with five year global bond issues. Rio Tinto debuted in the US markets with a $500m five year issue, led by JP Morgan and Salomon Smith Barney, while Walt Disney followed up a successful $750m three year transaction last week with a $750m 5.5 year global bond, once again led by Lehman Brothers.
  • Rio Tinto, the UK-based metals and mining company, and Walt Disney both tapped into strong US demand for high quality infrequent issuers this week with five year global bond issues. Rio Tinto debuted in the US markets with a $500m five year issue, led by JP Morgan and Salomon Smith Barney, while Walt Disney followed up a successful $750m three year transaction last week with a $750m 5.5 year global bond, once again led by Lehman Brothers.
  • UK retailer J Sainsbury this week brushed aside challenging market conditions for corporate debt to launch a successful inaugural bond in euros and to capitalise on its already favoured issuer status in the sterling market by raising £300m of 11 year debt. Sainsbury chose the dual currency structure to broaden its investor base beyond domestic shores and as a prelude undertook a six day roadshow in Europe as well as the UK.
  • * SNS Bank Nederland NV Rating: A2/A/A+
  • The Republic of South Africa has stormed the Samurai market with a ¥60bn blowout deal. It came at twice the volume and 25bp through the pricing for which Daiwa Securities SMBC and Nomura Securities won their mandates as joint leads in May. The 2007 dated bond has a 2% coupon, and was priced at par, to give a 141bp spread over yen Libor, 147bp over government bonds. Banks in the syndicate were Deutsche Bank, JP Morgan, Merrill Lynch, Mizuho, Nikko SSB and Tokyo-Mitsubishi.