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Hong Kong Mortgage Corp (HKMA) is in the process of appointing a bank as a rating adviser, with the intention of accessing the international debt markets later this year. The state run institution has had proposals from about eight banks. "We decided at our board meeting last October to initiate the process of gaining a rating," said Philip Li, senior vice president for finance at HKMA. "The banks have all given us their proposals and now it will be decided internally."

Merrill Lynch spearheaded another good week of issuance in the Australian primary debt market this week, demonstrating continuing strength in domestic investor demand. Merrill Lynch self-lead managed a A$400m two year dual tranche Kangaroo bond issue, with strong investor interest meriting an increase in size from A$350m.

The NTT DoCoMo jumbo new share offering is showing positive signs, according to bankers working on the deal. Strong retail interest coupled with large foreign orders are encouraging, and the issue, handled by Goldman Sachs and Nikko Salomon Smith Barney, could raise as much as $8.8bn. The bankers declined to comment on how much retail demand there is, but confirmed that around 55% of the 460,000 shares will go to individuals in Japan. Some 15% will be allocated to Japanese institutions, 15% to European funds and 15% to the US market.

The Chunghwa Telecom privatisation is turning into a cautionary tale of misjudgment and misunderstanding. The Taiwan government announced this week that it would not proceed with its planned $2.8bn international offering of Chunghwa shares. Most observers believe the government was ambitious in attempting such a large offering in the first place.

Australian forestry company Timbercorp this week used Commonwealth Bank of Australia's asset backed commercial paper programme to launch an innovative deal refinancing loans backed by eucalyptus trees. Although a number of deals backed by timber have been closed in the US, this is the first time that the technique has been used in Australia or Asia.

Premature reports surfaced this week that CNOOC will price its forthcoming IPO at HK$7 per share to raise around HK$11.5bn. Lead managers BOCI International, Credit Suisse First Boston and Merrill Lynch could not confirm the reports, saying that the price range would be set later this week. However, they said the issue has been well received in premarketing. The company is selling 1.64bn shares, of which 200m are secondary shares. There is also a greenshoe of up to 13.17% of the offer.

Australia Bank of Queensland was roadshowing a floating rate note for $100m in Asia this week. The bank is launching the deal in order to refinance a euro medium term note issue that matures in late February.

Hong Kong Li Ka-shing this week confirmed to the press that his listed companies would not be buying into Pacific Century CyberWorks (PCCW). This came as a relief to followers of Cheung Kong and Hutchison Whampoa. Some had feared that Li might use his estimated $25bn war chest to take up some or all of the stake that Cable & Wireless wants to dispose of, now that a lock-up period has expired. C&W is allowed to sell 7.5% of PCCW from February 17.

ORIX New Zealand Ltd, the wholly owned subsidiary of ORIX Australia Ltd, is preparing to issue the first securitisation in Australia or New Zealand to be backed by the residual value and maintenance risk of auto operating leases. Lead managed by Macquarie Finance and arranged by Macquarie Bank, the deal will raise NZ$98.4m through four tranches of floating rate notes. The transaction is expected to close on February 15.

UK water regulator Ofwat this week conditionally approved the wholly debt financed acquisition of Welsh Water by Glas Cymru, paving the way for the Welsh not-for-profit entity to approach the bond markets for over £1bn. However, the director general of water services, Philip Fletcher, made it clear that other water companies examining ways of exiting the industry via a zero equity structure, such as Kelda and Anglian Water, should not view the decision as a green light for a restructuring of the whole sector.

Freddie Mac took another step towards US Treasuries this week when it announced that its forthcoming Dutch auction sale of a $5bn three year Reference Note issue will have when-issued trading status. So far, nearly 100 investors have registered to take part and Freddie Mac described the list as "a veritable Who's Who" of investors. Freddie Mac's March 15, 2031 Reference Note issue will also be reopened for $1bn on February 13, but as one head of agencies remarked, the auction "is the issue of the day - the bulge bracket firms are quite outraged".

GMAC stormed the euro market this week with a Eu4bn five year transaction, amassing an impressive Eu10.25bn order book with neither a punitive new issue premium nor the benefit of a long premarketing process. The volume of orders took the issuer and lead managers Barclays Capital, BNP Paribas and Deutsche Bank by surprise. GMAC's initial plans were for a Eu1bn-Eu2bn issue.