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Latin American sovereigns tapped the euro denominated bond market this week in a trio of issues, led by a jumbo Eu1bn 10 year issue from Brazil — its second jumbo deal in five days.

Latin American sovereigns tapped the euro denominated bond market this week in a trio of issues, led by a jumbo Eu1bn 10 year issue from Brazil — its second jumbo deal in five days.

British Telecommunications should launch its Eu5bn equivalent jumbo bond issue in euros and sterling via Barclays Capital, Deutsche Bank and HSBC CCF next week, soon after completing European roadshows on Wednesday. The structure of the transaction has yet to be decided, but syndicate officials are speculating that in euros three and 10 year fixed rate tranches will be offered alongside a short dated floating rate note, and that sterling issuance will be between five and 15 years, with no 30 year sterling tranche.

British Telecommunications should launch its Eu5bn equivalent jumbo bond issue in euros and sterling via Barclays Capital, Deutsche Bank and HSBC CCF next week, soon after completing European roadshows on Wednesday. The structure of the transaction has yet to be decided, but syndicate officials are speculating that in euros three and 10 year fixed rate tranches will be offered alongside a short dated floating rate note, and that sterling issuance will be between five and 15 years, with no 30 year sterling tranche.

Canada Mortgage and Housing Corporation (CMHC) signed a $2 billion Euro-MTN programme on January 5. Merrill Lynch is the arranger. The Canadian State guarantees the programme. The issuer will be open to various structures. Trevor Gloyn, treasurer at CMHC, says: "CMHC's annual borrowing requirements are approximately C$2.0 to C42.5 billion per year. The amount that will be raised through the Euro-MTN programme will depend on market conditions." He adds: "We are not restricted in terms of currency for our deals, but in general our requirement is for Canadian dollar, whether floating or fixed." No roadshow has been planned yet. Gloyn says: "We are considering many different options on marketing the Euro-MTN programme, including dealer meetings, investor meetings and electronic roadshows. No definitive plans have been formalized however to this point." The programme is rated Aa1 by Moody's. Standard & Poor's gives an AAA rating to Canadian dollar notes issued off the programme and an AA+ rating to foreign currency notes off the programme. Last year three Canadian issuers signed Euro-MTN programmes. They were the gic Sun Life of Canada Funding, Province of Nova Scotia and Financement-Quebec, which has yet to issue). The dealer panel comprises CIBC World Markets, Deutsche Bank, RBC Dominiion Securities, TD Securities, Tokyo-Mitsubishi and the arranger.

Trans World Airlines' bankruptcy and acquisition by American Airlines could affect seven aircraft operating lease securitisations as well as a private ticket receivables deal launched by TWA in 1997. The beleaguered airline filed for a Chapter 11 bankruptcy on Wednesday and agreed to sell its assets to American for around $500m. American has committed $3bn to fulfil lease assumptions and will also provide $200m in debtor-in-possession financing - allowing TWA to keep operating until the sale is completed.

What would have been the Neuer Markt's first IPO of the year was postponed this week when United Business Internet Solutions decided not to go ahead with its 1.7m share issue. Another company, however, has taken on the challenge and may provide the first IPO of 2001 on the high growth exchange. UBIS's IPO was planned for January 22, but has been postponed because "the market is in a disastrous situation", according to Jurgen Schoenberger, a spokesman for the company. "We do not have the investors we want."

The loan backing the sale by Tomkins of Rank Hovis McDougall to Doughty Hanson will be launched at the end of this month. Lead arranger JP Morgan has worked on the securitisation of certain products of Rank Hovis McDougall. Until the launch of the securitisation the debt is held among four banks.

Globals * Citigroup Inc