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India's groundbreaking, reformist budget has been followed not by momentum and acclaim, but by a stock market collapse, several conspicuous arrests and the banning of brokerages including CSFB. Helped by access to confidential government documents, Chris Wright and Saibal Dasgupta examine whether the country is caught in a permanent pattern of scandal and upheaval, or instead making brave but painful progress towards market reform.

After an absence of over two years, Philippine Long Distance Telephone Co (PLDT) looks set to return to the international debt capital market and could be followed by state utility National Power Corp (Napocor)with an international bond issue. Bankers believe PLDT has selected Credit Suisse First Boston (CSFB) and HSBC to lead manage a $500m international bond issue, while Napocor has issued requests for proposal (RFP) for a potential $100m-$400m three year issue.

Ailing Japanese video game maker Sega Corp announced on Tuesday it is raising ¥50bn in a Euroyen issue of three year zero coupon convertible bonds through Goldman Sachs. The transaction is to cover heavy losses caused by the scrapping of its Dreamcast console. However, bankers in Tokyo reported yesterday (Thursday) that the issue was quoted at below 99 in the grey market and that it was struggling. Goldman Sachs declined to comment.

SembCorp Industries, the Singapore-based engineering services company, luxury good retailer Louis Vuitton and domestic property company CDL Property all launched domestic Singapore bonds this week. SembCorp arranged two tranches of bonds from the S$500m medium term note programme that it arranged last year.

Australia Westpac Banking Corp launched a £300m floating rate note (FRN) into the euro markets this week. The FRN, which was joint lead managed by HSBC and Royal Bank of Scotland, has a five year maturity, and a coupon of 10bp over sterling Libor.

Australia Australian Magnesium (AMC) is expected to emerge with the next large share offering from Australia. It has hired ABN Amro, JB Were and Merrill Lynch to sell $680m of new shares as part of a funding package for its Stanwell light metals project in central Queensland. Along with the debt facilities, the total funding is likely to be about A$1.7bn.

Merrill Lynch and Nomura Securities are finding the going tough as joint lead managers and bookrunners for the sale of 3,072,000 tracking shares in Sony Communications Network Corp (SCN), a Sony subsidiary. This will be Japan's first ever tracking stock and is a purely domestic offering. It should raise around $100m. However, although the Japanese retail market will buy, largely due to the Sony name, institutions remain wary of internet related stocks.

Kumgang Korea Chemical is planning to enter the international debt capital market with a $100m global 144A bond issue. The Korean company will be an unusual regional entrant into the market, specialising in paint production and building construction materials such as interior decoration, heat insulation material and safety glass. The company intends to conduct a roadshow for the public, fixed rate bond issue next week, said market officials familiar with the corporate. JP Morgan has been mandated as sole lead manager.

Members' Equity Pty Ltd, the Australian non-bank mortgage originator and servicer, plans to launch a securitisation in the Euro/144A market today (Friday). The $582m deal, lead managed by Credit Suisse First Boston (CSFB), is Members' Equity's first international offering since June last year, when the same bank brought the issuer's cross-border debut.

Merrill Lynch raised ¥83.12bn for Sanwa Bank on Tuesday through the sale of in-the-money preference shares convertible into shares of UFJ Holdings, the holding company for the merged Sanwa Bank, Tokai Bank and Toyo Trust & Banking. Toyo Trust & Banking originally issued the convertible preference shares to Sanwa in March 1999. That issue was at par, had a maturity of August 1, 2014, raised ¥80bn, and allowed investors to convert into Toyo stock at ¥710,900 per share. Merrill Lynch has resold them for Sanwa through this 144A/Reg.S transaction.

The Mirvac Group of Australian property trusts completed its A$500m securitisation this week - a deal that is more than twice as large as any previous commercial property backed issue in Australia. The transaction is backed by a diverse portfolio of 26 properties, valued by Standard & Poor's (S&P) at A$1.25bn, which include office, industrial, retail, hotel and car parking assets.

* AIG SunAmerica Institutional Funding II Rating: Aaa/AAA