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Asia * HK Synthetic MBS Co Ltd

AssiDoman, Sweden's leading forest products company, is signing a euro1 billion ($1.09 billion) Euro-MTN programme. A launch date at the end of Spring is planned, with an inaugural issue off the facility expected soon after. The aim of the programme is to attract international investors to the credit and to streamline its public and private issuance documentation under one facility. It also gives the issuer the flexibility to access Asian markets. Merrill Lynch has beaten off stiff competition to be chosen as programme arranger. Johan Lagercrantz, group treasurer, AssiDoman, says: "Merrill Lynch is well placed to arrange our programme given its long-established presence in the market. But it was a very close race and a hard decision to make." The borrower promises to be consistently active in the market this year. Its preference initially will be for plain vanilla deals with maturities of between five and 10 years. Although open to a range of currencies, the borrower will predominantly fund itself in euros. AssiDoman, operates over 90 facilities in countries such as the Czech Republic, Slovakia, Italy and France. It is one of the largest pulp and paper companies in Europe. Its quite substantial asset base includes 3.3 million hectares of forest land, which is enough to cover an area the size of Belgium. It joins its rival, Metsa Serla, who signed last year. Standard and Poor's rates AssiDoman's senior long-term debt A- and a senior long-term debt rating is also expected from Moody's in the near future. This rating is a good grading for a borrower in an industry which is known for being cyclical in nature and therefore more open to uncertainty. Lagercrantz, at AssiDoman, says: "Our rating is a very strong one for our industry. On top of that, we have substantial hidden values in our forest land." Dealers off the programme are ABN Amro, Deutsche Bank, JP Morgan, Salomon Smith Barney, SEB, Warburg Dillon Read and the arranger.

Asset-backed Capital, the triple-A Cayman Island vehicle, made its debut in Australian dollars. Since signing, via CSFB in 1996, it has raised $3.27 billion off 85 issues in nine different currencies, but this is its first time in Aussie dollar. The A$20 million note ($10.73 million) note matures on November 14 2001.

* Commerzbank AG Rating: Aa3/AA-/A+

Australia Syndication of the $2bn, three tranche facility for IP Backbone Co is progressing smoothly, according to arrangers Barclays Capital and Chase Manhattan Asia.

Aventis is to sell its first euro trade off its euro1.5 billion Euro-MTN programme. The euro40 million note will be issued on December 18 and has a two-year tenor. The note, which is private, pays euribor + 7 basis points. The programme was signed on September 20 this year. The drugs manufacturer is the result of the merger of Rhone-Poulenc and Hoechst. It has issued three notes off its MTN programme and will have raised $134.92 million on December 18.

Which houses have managed to place private MTNs for European corporates in 2000?

The UK leveraged loan market will have a challenging start to the next year with several transactions supporting credits in the DIY retail sector already being lined up for launch in January. The deals will give investors a good chance to form their views on supporting leveraged transactions for DIY and retailers in general, but most banks are highly sceptical about the sector's attractiveness to leveraged product.

HSBC has made sure it deserves its Christmas break by doing a batch of five-year dollar deals for issuers that include Britannia Building Society, Irish Life and Permanent and Nationwide Building Society. The $5.35 million deals are all vanilla trades. Britannia Building Society's tranche offers USDLibor+5. Jeremy Helme, treasury sales manager at Britannia, says: "We will consider all sorts of structure as long as they are not too complex," and he adds that this is unlikely to be the issuer's last trade of the year.

Two property companies are signing MTN programmes in a bid to improve their funding opportunities in the Euro- and domestic markets. The new signings add weight to the view that the MTN platform of issuance is a popular funding option for companies in the property industry. Sun Hung Kai Properties is the largest property group in Hong Kong and the first company listed there to sign a Euro-MTN programme. Morgan Stanley Dean Witter arranges the $500 million facility, off which forthcoming issues will be in a variety of currencies and will have maturities of up to 30 years. Dealers expect the first deal off the facility to hit the market in the coming weeks. Joining the arranger in the dealer group is Banque Nationale de Paris, Chase Manhattan, HSBC, JP Morgan, Lehman Brothers, Merrill Lynch, SG and Warburg Dillon Read. The borrower has spent this week in London roadshowing to both dealers and investors. Although market participants may expect similar borrowers to have non-investment grade status, this one holds a good A3 rating from Moody's. Meanwhile, General Property Trust (GPT) signed a domestic A$1 billion ($645.80 million) short-term note and MTN programme. Commonwealth Bank of Australia is the arranger. In the MTN dealer group are Bankers Trust Australia, Merrill Lynch Australia, Westpac Banking Corporation and the arranger. GPT is rated double-A long-term and A-1+ short-term by S&P's.

Lloyds TSB and RBC have underwritten a £100m facility for British Polythene Industry (BPI). The facility will be used for working capital and for a 30% share buy-back, by tender offer. The buy-back is to defend the borrower from a hostile bid by plastics and packaging business Macfarlane. The loan could go to further syndication depending on how the takeover bid proceeds. The battle began in September with a £92.3m takeover bid tabled by Macfarlane. The company upped the stakes when it raised its offer and bought 10% of BPI's shares in the market. But shares in BPI rose after the company said, on December 4, that talks with a third party could lead to a cash offer above the 310p a share offered by Macfarlane.