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IKB Deutsche Industriebank yesterday (Thursday) brought the first CLO under Kreditanstalt für Wiederaufbau's programme to transfer the risk of German small and medium business loans, with a Eu2.4475bn issue. Merrill Lynch was sole bookrunner for the five tranches of notes issued below a Eu2.235bn super senior credit default swap.

Sol Melia, the Spanish hotel chain, which has been waiting to sign its Euro-MTN programme since August, has made immediate use of the MTN market. It only managed to sign its programme this week, but straight away issued a euro206 million ($179.83 million) zero coupon note, which goes out to March 30 2001.

Goldman Sachs, ING Barings and Morgan Stanley Dean Witter have been awarded the mandate for a $1bn global issue of trust preferred securities by ING Groep's ING Capital Funding Trust III, rated A/Aa3. The SEC registered deal will be a non-cumulative perpetual non-call 10 transaction. Roadshowing finishes today (Friday), and the deal is expected to come to market early next week.

Investors Finance has done its sixth sterling trade of the year: a 29-year £

UniCredito Italia has signed a euro5 billion ($4.46 billion) Euro-MTN programme. UBS Warburg and UniCredit Banca Mobiliare are the arrangers. The dealers off the facility are the arrangers, ABN Amro, BNP Paribas, Chase Manhattan, Deutsche Bank, Dresdner Bank, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley Dean Witter and SG.

*EL.en, an Italian medical and industrial laser maker, has priced its Eu35.2m IPO towards the bottom of the range following investors' concerns over market volatility. The price was set at Eu26 from a range of Eu24.5 and Eu31.5. The stock will start trading on the Nuovo Mercato on December 11.

BoE Bank of South Africa has become the country's first private bank to issue a senior debt bond, with a R1bn three year issue launched this week on the domestic market through Merrill Lynch. The bond offers a 12.75% coupon on a 99.842 issue/reoffer price, giving a 105bp pick-up over three year government swaps. It was also the first ever offering on the domestic market from a single-A rated issuer - BoE is rated A1/A+/A+.

Kelda Group announced six month interim results on Tuesday that were in line with analyst expectations. Pretax profits fell to £81m from £122.2m last year, due to 14.5% price cuts imposed on the company by industry regulator Ofwat. Announcing the results, Kelda's chairman urged Ofwat for a "long term strategic view of the industry", following the restructuring plans put forward to the regulator by Glas Cymru, prospective owner of Welsh Water, in early November. As a company limited by guarantee, Glas Cymru is regarded as having a better chance of winning regulatory clearance than Kelda did when it made similar proposals earlier in the year.

In mid-March 1999, City of Rome (Rome) will become the first Italian city to sign a Euro-MTN programme, following the trend among municipalities for entering the market. JP Morgan has won the arrangership mandate for the euro500 billion ($566.25 billion) Euro-MTN programme. The dealer group will be announced after the city council gives its approval in the next two weeks. It is expected that 70% of the appointed dealers will be international houses and 30% Italian banks. An inaugural issue of euro150 million with a long maturity is planned to kick off the facility, after which time the borrower expects to be in the market regularly. Funds will be used to finance infrastructure and cultural projects, including a modern art museum. Rome joins other quasi-governmental bodies within Euroland which are turning to the international capital markets for funds. Region of Lazio signed its $1 billion Euro-MTN programme in November 1997, and Province of Naples will set up a facility in March. Other cities are expected to follow Rome's example. Borrowers like City of Bologna, would then be able to diversify their investor bases beyond those captured by domestic programmes. Silvia Candini, an associate in fixed income origination at JP Morgan, says: "I think it's a trend in the market. Euro-MTN programmes are appreciated by other local authorities and seen as very valuable and flexible funding tools." Candini is confident that the programme will receive a strong rating because Rome itself holds a good double A- rating from Standard & Poor's and Fitch IBCA.

Kingfisher, the UK-based retailer, has returned to the MTN market. It signed a euro2.5 billion ($2.64 billion) Euro-MTN programme. Although the issuer is keeping a tight lid on programme details, it listed the facility in London and Paris on Tuesday, May 25 1999. Deutsche Bank has won the arrangership mandate. The issuer is one of Europe's most profitable retailers with companies such as B&Q, Woolworths and Superdrug in its group. It also has stakes in Norweb Retail and the French electricals retailer, BUT. No doubt the issuer's funding needs will increase following its merger with ASDA supermarkets, announced this week. Standard & Poor's and Fitch IBCA have both rated the programme single-A. Joining the arranger in the dealer group are ABN Amro, Banque Nationale de Paris, Barclays Capital, HSBC and Warburg Dillon Read.

Kingfisher has been busy in the markets this week. It kicked off on Monday with a two-year euro50 million ($43.96 million). The note, which pays a single coupon, will be issued on 18 December 2000. This was followed by yesterday's £