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BRAZIL has taken bids from banks for a five year euro denominated issue, in a week which has seen the return of Brazilian borrowers to the capital markets. Eletrobrás, the Brazilian power utility, launched its delayed $300m five year deal via sole lead manager WestLB.

BRAZIL has taken bids from banks for a five year euro denominated issue, in a week which has seen the return of Brazilian borrowers to the capital markets. Eletrobrás, the Brazilian power utility, launched its delayed $300m five year deal via sole lead manager WestLB.

THE REPUBLIC of Colombia priced its debut Eu200m three year bond issue yesterday (Thursday) with a healthy 11% coupon to entice European retail buyers. Lead managed by Morgan Stanley Dean Witter, the deal for Ba2/BB+ rated Colombia was its first euro denominated transaction, following its failed attempt to enter the market in 1999.

COMDIRECT proved that business-to-consumer internet sites can still raise money on the equity markets with a successful Eu871m IPO at the beginning of the week. After pricing at the top of the Eu25-Eu31 range, Comdirect shares opened up 23% at Eu38. The Commerzbank-led deal was 10 times oversubscribed. "Institutional demand became less price sensitive in the course of bookbuilding when the market started to become friendlier," a banker close to the deal said.

COMDIRECT proved that business-to-consumer internet sites can still raise money on the equity markets with a successful Eu871m IPO at the beginning of the week. After pricing at the top of the Eu25-Eu31 range, Comdirect shares opened up 23% at Eu38. The Commerzbank-led deal was 10 times oversubscribed. "Institutional demand became less price sensitive in the course of bookbuilding when the market started to become friendlier," a banker close to the deal said.

Weaker than anticipated non-farm payroll numbers released last Friday after a week of anti-inflationary data sparked a remarkable reversal for the US dollar markets, provoking record issuance this week. Over $19bn of deals were digested, mainly by the US investor base, including a $4.5bn two tranche sale for Ford Motor Credit, a $3bn two tranche issue for Morgan Stanley Dean Witter, and a $3bn three tranche funding for International Paper. The European Investment Bank dominated the Eurodollar sector, issuing $500m in taps of outstanding bonds and a $1bn five year e-bond via HSBC and JP Morgan. The leads report strong placement to Asian central banks and funds, and European and UK IMGs and funds, although other bankers were sceptical that a tightly priced bought deal - the transaction came 81bp over Treasuries - would easily find a home. Japan Bank for International Co-operation (JBIC) is preparing to launch its first global transaction, via Goldman Sachs and UBS Warburg. Launch is expected early next week, subject to marketconditions. After weeks of speculation, the Kingdom of Spain has confirmed its intention to issue a $2bn global transaction, although launch is said to be several weeks away. Presentations are expected to start at the end of June in the US, Europe and Asia. Market sources say that Deutsche and Goldman Sachs have retained the mandate. Also in global dollars, Aa3/AA- rated Wachovia Corp is said to be preparing a $500m five year global bond via Merrill Lynch and Wachovia Securities. In the FRN market, BNP Paribas has the mandate for a $100m three year floater for BBB+ rated United Bank of Kuwait plc. In euros, Liberty Lighthouse should issue Eu300m to Eu500m of three year paper next week via WestLB, but no decision has been reached on whether to issue fixed or floating rate. DaimlerChrysler will issue a Eu1bn-plus fixed rate bond in the near future via joint lead managers Dresdner Kleinwort Benson and JP Morgan. EdF should soon emerge with its Eu1bn 10 year via Deutsche and SG, and SNCF should follow soon afterwards for Eu750m to Eu1bn of 10 year funds via ABN Amro and SG. UK engineering company TI Group has appointed HSBC and UBS Warburg to lead manage a sterling bond and Deutsche and Schroder Salomon Smith Barney as bookrunners for a euro offering. The sterling issue is expected to total £200m and have a maturity of between 10 and 20 years. The euro will be in the region of Eu500m. Investor roadshows will be held in the UK and continental Europe in the week starting June 14. TI Group is rated A3 by Moody's and BBB+ by Standard & Poor's. Coca-Cola Erfrischungsgetraenke Berlin, the German bottler for the Coca-Cola Co, has awarded a mandate to Deutsche Bank and Morgan Stanley Dean Witter to lead manage its debut euro issue, a Eu400m five year bond, following roadshows starting on June 14. Moody's this week assigned the company a rating of A2. Baa3/BBB- Clear Channel Communications Inc is expected with a global euro denominated transaction via ABN Amro and Deutsche Bank. Italian insurer Generali is planning a Eu2bn transaction comprising 10 and 20 year senior tranches for Eu1.5bn, and a 22 non-call 12 subordinated tranche of Eu500m. The offering will be arranged by Mediobanca and UBS Warburg with joint bookrunners for the senior issues Commerzbank, Mediobanca, JP Morgan and UBS. ABN Amro, Mediobanca, JP Morgan and UBS Warburg will jointly run the books on the subordinated issue. Roadshows for the deal start on June 20. Natexis Banques Populaires will begin roadshowing next week in the UK, France, Germany and across southern Europe, with a view to launching a Eu200m tier one issue via Schroder Salomon Smith Barney early in the following week. Natexis will act as a joint lead manager on the planned transaction. Joint bookrunners Caja Madrid and CAI will start marketing a 10 year Eu200m transaction for Spain's Junta de Andalucia within the next two to three weeks. Initial price talk suggests an all-in level just below Euribor.

* General Motors Acceptance Corp Rating: A2/A/A

DEUTSCHE Bank stunned the German equity market this week with a block sale of Allianz shares worth Eu2.5bn, the biggest ever block sale in the country. The deal took advantage of forthcoming changes in withholding tax arrangements due to come into effect next year with a forward sale structure. In just over six hours, Deutsche reduced its holdings in Allianz - the largest insurance company in Europe - from 7% to 4.9%.

Deutsche Bank is set to bring another breed of telecoms credit to the already busy market, as FirstMark seeks financing for its launch into Germany. The borrower is tapping the loan market for Eu480m to support its development of wireless local loop technology in Germany. The technology is designed to bring broadband access, replacing the old copper lines used by many small and mid-sized businesses to access the internet. The US company is opening its European operations in Germany, but plans to launch this technology, and others such as digital subscriber lines, and optical fibre lines to other European countries.