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* Bank Nederlandse Gemeenten NV Rating: Aaa/AAA/AAA

Continental, the German tyre and brake manufacturer, has finally signed its euro1 billion ($934.93 million) Euro-MTN programme, which it originally planned to complete on November 30 2000 (see MTNWeek, issue 206). After then rescheduling the signing for December, it at last put pen to paper on Monday, January 15. As reported, the arranger is Merrill Lynch and the dealer panel includes ABN Amro, Deutsche Bank, HSBC, Morgan Stanley Dean Witter, Norddeutsche Landesbank, UBS Warburg and the arranger. The issuer is rated BBB+ by Standard & Poor's and Baa1 by Moody's. It joins a clutch of exciting triple-B corporate issuers which joined the market in 2000: Casino, Rhodia, Sol Melia and Vivendi.

Eletropaulo Metropolitana and Banco do Brasil followed in the Republic of Brazil's footsteps this week and tapped strong international investor demand for Brazilian paper in the wake of the country's recent upgrade from Standard & Poor's and the US Federal Reserve's decision to ease monetary policy. Eletropaulo, Latin America's biggest electric utility, issued $100m of one year paper off its Euro-CP programme to refinance two bond issues maturing in January and February, while Banco do Brasil offered $100m of 7.5% two year bonds at a re-offer price of 99.3184. Both offerings were led by BB Securities, Banco do Brasil's international investment banking arm.

* General Electric Capital Corp Rating: Aaa/AAA/AAA

The Czech Republic is issuing Ck5bn (Eu141m) of 15 year bonds on the domestic market today (Friday), the longest dated paper ever from the sovereign, equalling the longest outstanding bond on the market, set by the EIB. "Everyone is waiting to see how the issue ends up," said Tomas Cerny of Commerzbank capital markets in Prague. "Yields have been falling across the curve since Christmas, and are now at historic levels. Market expectations are for rising rates at the long end, so it will be interesting to see what price they can achieve."

The CP market is facing a black few weeks, especially in California. Corporate spreads widened further this week when Southern California Edison (Edison), which distributes electricity to over 4 million customers, and PG&E, the region's biggest utility, suspended payment on over $600 million-worth of debt between them. Grid operators ordered statewide power cuts. The utilities had to absorb big price increases in the wholesale power market themselves because of a rate freeze on customers' bills. And suppliers have stopped selling power to the two companies due to downgrades of their ratings to junk status by Fitch. Moody's and Standard & Poor's are expected to follow suit putting both companies at default. John Delaney, MTN and CP origination at Goldman Sachs, says: "What's happening in California is certainly causing concern amongst CP investors. Maturities are shortening and more overnight trades are being done, which is a natural reaction." And although PG&E has only US CP shelves, and Edison has no outstandings off its $700 million Euro-CP programme, it is possible that the effects could be felt in Europe before long. Delaney adds: "The defaults of these companies will have a certain knock-on effect in the corporate sector, but it's an evolving situation. We should also expect to see spreads widening in Europe but it will probably be less dramatic."

Deutsche Apotheker- und Arztebank has increased the ceiling of its euro3 billion ($2.83 billion) debt issuance programme to euro6 billion. The arrangers are Deutsche Bank and Merrill Lynch.

Croatia Standard Bank has won the mandate to arrange a $35m three year term loan for Croatian Bank for Reconstruction and Development (HBOR).

Argentina * Banco Hipotecario SA

French drinks manufacturer Rémy Cointreau demonstrated this week how far it has come from its problems of two years ago, with a Eu260m convertible bond that attracted enormous investor interest. The bond was issued to finance Rémy's purchase of Dutch drinks producer Bols.

EFG Hellas has increased the debt limit of its euro500 million ($471.44 million) debt instrument programme to euro1.5 billion. Banca d'Intermediazione Mobiliare IMI and Merrill Lynch have been added as dealers. EFG Hellas is the financing vehicle for the Greek bank EFG Eurobank Ergasias.

* BES Finance Ltd Guarantor: Banco Espirito Santo e Comercial de Lisboa SA