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The Republic of Italy will today (Friday) price the first sovereign floating rate note to be marketed and distributed over the internet, adding to its reputation for innovation while offering investors protection from hostile fixed rate credit markets.

The Republic of Italy will today (Friday) price the first sovereign floating rate note to be marketed and distributed over the internet, adding to its reputation for innovation while offering investors protection from hostile fixed rate credit markets.

Euroweek has uncovered further details of the loans for British Telecommunications (BT) and Vodafone Airtouch. Both are tapping the European loan market for self-arranged club deals, to make the most of their strong sway over relationship banks and the narrow pricing this can bring them. BT has assembled a group of seven banks to provide it with a Eu16bn CP backstop facility. The deal is not intended to be drawn down, but will give BT easy access to the deep liquidity of the US and European CP markets.

Argentina Barclays Bank (Miami) has been mandated by Banco Rio de la Plata SA to arrange a $150m two year loan-style FRN for general corporate purposes.

The UK brewing sector is set for a busy May and June as European companies enter the later stages of bidding for the brewing division of Bass. The unit could sell for between £1.5bn and £1.8bn, and bidders are looking for financing in the loan market of between Eu2.5bn and Eu3bn. Among the interested companies are Carlsberg from Denmark, Dutch company Heineken, and a Belgian company - possibly Interbrew.

Bahrain Gulf International Bank has selected Bank of Tokyo-Mitsubishi, Barclays, Citibank, Commerzbank, HSBC and National Bank of Abu Dhabi as arrangers of its $300m loan.

Widening secondary credit markets made life tricky for borrowers entering the primary market this week, but, despite little sign of the hostile environment abating, corporates continue to queue up to tap the euro market. Activity in the dollar market was heavily restricted by a trio of factors: the downgrading of finance company Finova; continued volatility on Nasdaq; and expectations of a 50bp rate increase at next week's FOMC meeting. Finova's downgrade pushed corporate bond spreads wider against swaps, reducing arbitrage opportunities - even if top names like GECC were able to tap the market successfully. Spreads against swaps also moved out in euros, but not so sharply, and bankers are lining up for a busy month. Iberdrola, Spain's second largest electricity group, rated A1/AA-/AA, will next week launch a Eu500m five year transaction via BBVA, Morgan Stanley Dean Witter and UBS Warburg. Spread talk on the deal is in the low 30s over Libor. Rhodia plans to launch its Eu500m five year next Wednesday at 65bp to 70bp over swaps. Joint books are Bear Stearns and UBS Warburg. Bankers suggest that VNU's Eu700m seven year bond via Deutsche and Schroder Salomon Smith Barney is likely to be in the Euribor plus 65bp to 70bp range. Linde's planned five to 10 year issue of up to Eu1bn is now expected to be a seven year bond. Early price talk on the transaction, via Deutsche, is Euribor plus 40bp to plus 45bp. Südzucker AG has mandated Deutsche for a 10 year Eu300m issue. Roadshows for the A1 deal will begin next week. Deutsche is also said to have the mandate for an issue for Coca-Cola's German arm. Italian oil and gas group ENI will commence roadshows next week to publicise a Eu500m 10 year transaction to be lead managed by Goldman Sachs and UBS Warburg. It will be ENI's debut issue off an Eu2bn Euro-MTN programme. Early price talk is Euribor plus 15bp to 20bp. Cirio is set to launch its Eu150m three year FRN in the next week, via Banca di Roma, JP Morgan and Unicredito. It will be priced in the 285bp to 300bp range. Impregilo SpA, Italy's largest construction company, hopes to launch a Eu200m FRN next week via Mediobanca after a roadshow in Milan on Friday. A Mediobanca official said the bank viewed the unrated company in the BB to BB+ range. Ducati Holding Motor SpA should launch a Eu100m five year deal via CSFB and Mediobanca in the next fortnight. Roadshows will be held in Milan on May 17 and in London on May 18. Mediobanca views the company as a double-B credit. Australia's Telstra is said to be looking to raise up to Eu1bn. Last week the company was downgraded by Moody's and Standard & Poor's from Aa2/AA+ to Aa3/AA. EdF will begin roadshows for its Eu500m to Eu1bn 20 year bond via Deutsche and SG next week. Further down the line, Ahold will tap the market for around Eu1bn after completing its equity offering. Swedish mortgage bank Landshypothek will next week issue Eu200m to Eu250m of three to five year floating rate notes via ABN Amro. Rated A-, the issue will be the inaugural trade off the bank's Eu1bn Euro-MTN programme. Caixa Geral de Depositos has postponed its plans to issue Eu500m of subordinated debt due to volatile market conditions. Instead, the bank will issue Eu500m of senior floating rate notes in the public market next week. CSFB and UBS Warburg were mandated on the sub deal, but for the senior issue CSFB is joining forces with Deutsche. AIG SunAmerica is set to launch a £200m 20 year deal next week in the mid-150s over the Gilt. Morgan Stanley Dean Witter and UBS Warburg have the mandate. Smiths Industries should launch its £250m 15 year issue via Barclays and UBS Warburg next week. Spread talk has moved out 25bp to 30bp to take account of market volatility and is now around 230bp over the Gilt. HSBC Markets and JP Morgan have won the mandate to lead manage St Gobain's debut sterling transaction. The £300m five year bond will be launched next week.

Eastern European loans specialists were this week second guessing each other over the prospect of an arranging mandate for one of Hungary's best known credits - Mol. The oil and gas company is preparing to come to market within the next month or so and has called for banks to submit bids for a $300m revolving credit facility with a tenor of between five and seven years.

Argentina Argentina aims to swap around $3bn of bonds by the end of May. They will include Brady bonds and other short-term debt in exchange for two new bond issues of five years and a tranche of between 10 years and 30 years.

DESPITE continued volatility on the Neuer Markt, equity issuance remains strong on the high growth exchange, with four IPOs this week and more in the pipeline. The Nemax all-share performance index fell throughout the week, reaching 5,963.8 by mid-morning yesterday (Thursday) - down 10% from 6,635.7 at the end of last week.