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European Investment Bank (EIB) has increased the debt ceiling off its Euro-MTN shelf, making it the second-highest debt limit in the market excluding programmes with unlimited debt limits. The ceiling was raised from euro30 billion ($27.05 billion) to euro50 billion. An official from EIB's funding department says: "We would have been getting fairly close to the upper limit of the facility. We have found it to be a very efficient tool for documenting issuance." The official adds: "We don't expect a great increase in volume of issuance over the coming year - it will be business as usual. We are studying the possibility of using the programme more for the issuance of sterling." EIB signed the shelf in 1996 and the original debt ceiling was $5 billion. The official explains: "At first the programme was just for private MTN placements and we used to issue our benchmark trades as standalones. But now we've really started using it for everything." EIB joins Bank Nederlandse Gemeenten, the only other issuer with a euro50 billion debt limit off its Euro-MTN facility. Landesbank Baden-Wurttemberg, KfW and Morgan Stanley Capital have $50 billion limits on their Euro-MTN programmes. Deutsche Bank and Goldman Sachs are the arrangers.

Brazil * Banco BBA Creditanstalt (Nassau)

JP Morgan and Barclays have underwritten what could be the final bid for Spain's smallest power generator, Hidroelectrica del Cantabrico. The two have guaranteed a Eu3bn bid from Ferroatlántica, backed by Energie Baden-Württemberg (EnBW), for 25% of the Spanish utility.

Telefonaktiebolaget LM Ericsson issued its fifth note of the year, a $15 million trade that goes out to March 2006. The issuance this year marks a return to the markets for Ericsson, after a break of over 15 months where it issued nothing. This year it has issued two notes in euro, two in Swedish krona and this last in dollar.

Merrill Lynch managed to complete this week the biggest ever placing of banking stock in Norway, Den norske Bank's (DnB) Nkr4.3bn (Eu536m) secondary offer, with the minimum of fuss and excellent results. Investors were drawn to a company that is seen as a good defensive stock in a country that is likely to prosper while oil prices stay high.

Telefonaktiebolaget LM Ericsson (Ericsson) are to issue two Swedish kronor Euro-MTNs on April 9. Both notes are for Skr500 million ($47.89 million) and have a maturity of two years. One note pays interest annually and has a final coupon of 4.80%. The second note pays interest quarterly. The two notes are Ericsson's third and fourth issues of the year respectively. The issuer's two previous notes this year were issued in euro.

* Alstom Holdings Amount: Eu205m

* Allied Domecq Financial Services Guarantor: Allied Domecq plc

Dollar swaps traded in a very tight range this week. Ten year spreads traded as high as 95bp over 10 year Treasuries and only as low as 91bp over. Five year swaps fluctuated even less: they traded in a tight 84bp-85bp range over Treasuries. The stock market once again took the focus. Though it rallied strongly yesterday (Thursday), it began the second quarter much as it had ended the first. Corporate results were uniformly bad and grisly scenes were witnessed, particularly on the Nasdaq.

Lehman Brothers and Mediobanca yesterday (Thursday) put the finishing touches to a Eu700m batch of exchangeable bonds that caught the mood of investors keen to invest in defensive assets. The banks exercised the greenshoe on a deal that saw Italy's third largest pure insurance group La Fondiaria issue three notes. The notes have a new structure designed to reassure investors that the bond floor will remain steady.

Ford Credit Of Australia (Ford) has issued a DKr600 million ($78.85 million) seven-year note that will be issued on May 14 2001. The note, which pays interest annually, will pay a final coupon of 6%. The note is issued of Ford's euro8 billion ($6.99 billion)Euro-MTN programme that was signed in November 1999.