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Brazil braved volatile markets this week to launch a much anticipated Eu500m seven year benchmark bond. JP Morgan and UBS Warburg won the mandate last Friday evening after weeks of intense bidding during which euro houses proposed Brazil do anything from a seven to a 30 year euro issue.

BNP Paribas and HSBC Investment Bank have arranged and underwritten a $2bn dual tranche bridge facility for Cadbury Schweppes Finance that is guaranteed by Cadbury Schweppes. The facility, which will launch this week, is to part finance Cadbury's $1.45bn acquisition of bottled soft drinks company Snapple from Triarc, the US beverages and fast food holding firm.

Cadbury Schweppes is expected to visit the bond markets later this year or early next year to refinance its $1.45bn acquisition of the Snapple Beverage Group, which should be completed by November. The UK company, which is virtually debt free and has a market capitalisation of around £8bn, will raise the capital initially through a two tranche revolving credit facility arranged by HSBC and BNP Paribas. (See Loans News pages)

BNP Paribas and HSBC Investment Bank have arranged and underwritten a $2bn dual tranche bridge facility for Cadbury Schweppes Finance that is guaranteed by Cadbury Schweppes. The facility, which will launch this week, is to part finance Cadbury's $1.45bn acquisition of bottled soft drinks company Snapple from Triarc, the US beverages and fast food holding firm.

Market report Compiled by Frank Hracs, TD Securities, Toronto, Tel: +001 416 982 8785

The price range for CosmOte has been set below expectations at between Dr3.070 and Dr3.750. Greece's second mobile operator plans to list in Athens and London in October, and hopes to raise E600m at the top end of the range. The deal represents 17% of the company of which one third is capital increase and two thirds are existing shares sold by OTE and Norway's Telenor. There is a greenshoe of 15%.

Representatives of the government of the People's Republic of China will be under close market scrutiny as they head to the International Monetary Fund and World Bank meeting in Prague this week. Speculation has been growing that a potential $1bn 10 year deal from the republic is in the offing, with JP Morgan, Morgan Stanley and Goldman Sachs closest to the transaction.

* Deutsche Hypothekenbank Frankfurt-Hamburg AG Rating: Aa3

CSFB has been added as a dealer to DaimlerChrysler's multi-currency CP programme due to its good reverse enquiry performance, according to the dealer. The ceiling of the programme has been upped from euro3 billion ($2.55 billion) to euro10 billion.

Boeing Capital launched a blowout $1.5bn global debut this week, leading a slew of successful dollar deals that have defied market concerns about a heavy calendar. The deal, led by Merrill Lynch and Salomon Smith Barney, attracted as much as $4.5bn to $5bn of orders and was increased from $1.25bn. The strength of the market brought issuers off the sidelines. Bear Stearns and Lehman Brothers took the opportunity to offer $500m of global floating rate note deals; Allstate Financial launched a $400m five year global 144a transaction; and Honeywell launched a blowout $750m five year offering. Hanson is due to price a $750m 10 year deal via Goldman Sachs and Lehman Brothers today (Friday) at 215bp, down on the expected $1bn and slightly wider than initial price guidance. But the issue is said to be well oversubscribed with the leads reportedly amassing a book in excess of $1.2bn. The $3bn global bond for KPN is expected to emerge next week, priced some 20bp back from the recent Telefónica transaction. No step-up provisions will be incorporated in the deal. UBS plans to issue $1.25bn of trust preferred securities in the global market, structured as a perpetual with a call and step-up option in year 10. The hot topic of the week in the euro sector is the bidding competition for France Télécom's Eu6bn package. An announcement on the leading team is expected imminently and RFF meanwhile is due to award a mandate today for a Eu500m or larger 20 year transaction. High points of this week's euro fixed rate issuance were a Eu1.5bn five year global bond for Procter & Gamble and a Eu1bn 10 year for Citigroup. Both issuers conducted their first ever roadshows in Europe and were rewarded by successful pan- European distribution. The Alusuisse Group will today launch a Eu300m-Eu400m two year deal via Goldman Sachs. The A- issuer is expected to pay in the mid 30s over Euribor. French electronics company Schneider is set to launch a Eu300m-Eu500m seven year transaction next week via BNP Paribas and Morgan Stanley Dean Witter at 38bp-40bp over Euribor. Next week's calendar also includes deals from car firms Renault and Fiat. Renault will launch a Eu500m seven year bond via JP Morgan and SG in the Euribor plus 70bp range and Fiat a Eu750m three year transaction at mid-swaps plus 30bp. Lead managers are CSFB, JP Morgan and Unicredito. Goldman Sachs will raise up to Eu1bn next week in its first global bond denominated in euros. The bank is due to embark on its first ever European roadshow, to France, Holland, Germany and London on Tuesday and Wednesday. Unicredito is set to issue Eu1bn of tier one preferred securities in euros and/or dollars. Lead manager Merrill Lynch is hosting roadshows in Europe and the US, with Chase and UBS Warburg as joint leads. Credit Suisse will next week launch the subordinated segment of its acquisition financing for DLJ. The Eu2bn deal, to be denominated in dollars, euros and sterling, will include a Eu500m 10 year fixed rate tranche, two 10 year non-call five issues in euros and dollars and a 10 year sterling tranche. BBB+/Baa1 rated Texas Utilities Europe is said to be planning a euro debut following roadshows in October. And Pacific Life Funding will embark on a European roadshow during the week of October 2 via CSFB and Deutsche Bank. The Eu500m five year deal for Corus, due to be led by Deutsche and Schroder Salomon Smith Barney, has been postponed following further negative news from the steel sector. In the sterling sector, increased demand for long dated non government debt following the MFR announcement prompted £800m of taps and £350m of new 20 year plus debt by triple-A borrowers. The tap business is expected to continue but few new deals appear to be in the pipeline. However, following ING's successful £350m 10 year deal, the Co-operative Bank is planning a lower tier two transaction next week and Rabobank is due to raise £150m-£200m of 20 year bonds via Barclays.