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Shiseido, the Japanese cosmetics maker, is due to sign a $300 million Euro-MTN programme on November 15. DKB International is the arranger. It is expected to obtain programme ratings of A1 by Moody's and A by Standard & Poor's when it signs, which will make it one of the highest-rated Japanese corporates in the market. An official at DKB International says: "The credit market is developing in Europe and European investors want to diversify their portfolios, so it is a good time for Shiseido to join the market." Thirty-six Japanese corporates have issued in 2000, but only Toyota has a higher rating than Shiseido, at Aa1. But there have not been many new names joining the market. Shiseido is only the sixth Japanese corporate to sign in the last two years. DKB International has been the third busiest bookrunner for Japanese corporates this year. It has lead-managed 20 trades. The official at DKB International says: "Shiseido will mainly issue in dollars and euros and they prefer plain vanilla structures to highly structured products. They will be open to reverse enquiry." Shiseido launched a domestic bond in September for ¥20 billion ($186.49 million). Daiwa SBCM was the bookrunner with DKB International and Salomon Smith Barney as co-managers. David Roberts-Jones, director, Euro-MTN origination at DKB International, says: "Shiseido is already well-known in Japan, so they wish to improve their investor name recognition and to be able to respond to the improved capital flows for credit product in Europe." The eight-strong dealer panel will be announced next week.

The Region of Sicily is planning a long dated euro transaction in the near future, joining the long list of European sub-sovereigns to tap the debt markets in recent weeks. The region was this week hearing proposals from a shortlist of seven banks bidding for the mandate. The offering will raise around Eu600m (Lit1.1tr). UBS Warburg and UniCredit Banca Mobiliare are among the frontrunners to be appointed lead managers and the deal is expected to be launched next week.

* European Investment Bank Rating: Aaa/AAA/AAA

* Barclays Bank plc Rating: Aa3/A+

* BMW Finance NV Guarantor: BMW AG

Bank capital is set to dominate the primary markets this month, as issuers take advantage of a recovery in subordinated spreads, which had widened significantly in October, and investors look for yield enhancement by playing the capital spectrum. This week, lower tier two debt featured strongly in the euro sector, with BBVA raising Eu750m of 10 year non-call five bonds and Banco Popolare di Lodi Eu150bn of seven year securities. But both deals encountered hurdles.

UBS Warburg launched a surprise $2.42bn zero coupon convertible for ST Microelectronics at the end of last week with terms that were viewed as exceptionally aggressive. The 10 year bond was the largest zero coupon convertible, achieving the highest premium on a convertible this year: a staggering 45%.

Uncertainty weighed on the tobacco sector this week amid the debacle surrounding the result of the US presidential election, with investors to a large extent keeping to the sidelines. Already beset by serious litigation problems in the US, tobacco companies were eagerly awaiting the election result, which will be key to predicting further developments in litigation, as well as in future regulation of the industry.