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ONE global investment bank has been especially successful in Singapore in recent times. Salomon Smith Barney has picked up the biggest share of international equity capital market deals from the Lion City since 1999.

Singapore has delivered international investors two of the most exciting equity issues to emerge from Asia this year. Prospects look good for the year ahead as a spate of privatisation issues is set to emerge as well as plenty of IPOs by local and foreign companies. Leading Singapore companies are also expanding overseas through acquisition and are becoming more diversified in their ability to access global capital. International securities firms have been building their operations in Singapore to win new issue mandates and tap into the growing number of asset management companies setting up in the island republic. Mark B. Johnson reports.

After remaining aloof from the international bond markets, Singapore is now attempting to establish its dollar as an alternative currency sector. Already several supranationals and corporates have issued Singapore dollar bonds, and the range of borrowers tapping the market is set to increase.

In this article we survey alternative models of default.

THE bookbuild for the placement of 10.2m Commonwealth Bank of Australia (CBA) shares began on Tuesday and closed at 5.00pm Sydney time yesterday (Thursday). Arrangers UBS Warburg and Credit Suisse First Boston were due to consult with CBA last night and the pricing of the placement will be made public today (Friday). CBA has recently received approval for a friendly takeover of Colonial, a diversified Australian banking, insurance and financial services group. The timing for the placement is ideal, as the bank sector of the All Ordinaries stock index is trading close to all time highs reached in April 1999. The bank sector weakened in the second half of last year, but has rallied steadily since February lows of 6,100 to stand at 7,300 yesterday.

DOMINANT Australian telecommunications company Telstra proceeded with its inaugural Eu1bn Eurobond issue this week, overcoming volatile market conditions and worries prompted by the company's recent ratings downgrades. These factors, plus a large funding requirement, provided less than ideal circumstances for lead managers BNP Paribas and Deutsche Bank. Nevertheless, generous pricing and a reduction in the originally slated maturity of seven or 10 years to a five year tenor helped to make the transaction a success, and resulted in an oversubscription, according to the lead managers.

GOLDMAN Sachs completed the sales of 28.5m American Depository Shares (ADSs) of Taiwan Semiconductor Manufacturing Corp (TSMC) late last week, raising $1.019bn. The ADSs were placed at $35.75, a premium of 43% to the underlying shares and a premium of 2.6% to the five day moving average for the ADSs. If the greenshoe is exercised the placement will total $1.171bn. The success of the deal signals the rekindling of international investor appetite for Taiwan and could open the gates on a flood of Taiwan equity deals waiting to emerge.

INTERNATIONAL demand for the China Unicom placement and IPO is improving, according to sources close to the deal. Morgan Stanley Dean Witter is in the middle of a roadshow to promote the sale of 2.46bn Unicom shares, as well as the potential 369m share over-allotment option. Demand for Unicom is increasing due to the improving investor sentiment to Nasdaq technology stocks and the improvement in global telecommunication share prices.

FOR the first time in over a month, the Australian corporate debt market witnessed new domestic bond issues, suggesting that conditions have improved enough for local issuers to return to the domestic market. The placement of three bond deals - for St George Bank, Westfield Trust and The Bank of Queensland - after several weeks of no primary activity, demonstrated that there is still investor interest for new domestic issues.

Australia * Standard & Poor's (S&P) raised its corporate credit ratings on Comalco, the aluminium producer, to AA-/A1+ from A+/A1. S&P also boosted its short term rating on Comalco Finance's guaranteed A$650m commercial paper programme from A1 to A1+. The upgrades follow Rio Tinto's acquisition of minority stakes in Comalco that increased its holding from 72.43% to 98.45%. Rio Tinto will move to compulsorily acquire the remaining interests. The acquisition is consistent with Rio Tinto's strategy of focusing on its key minerals, including copper, gold, iron ore, coal and aluminium. The ratings of Comalco will now track Rio Tinto's.

Australia * Bankers close to the Vodafone Pacific listing believe that if the market rally continues, the deal could be back in the market in the next few weeks. However, parent Vodafone Airtouch and its bankers must start the transaction within the next two weeks if the deal is to be completed before the European and US summer holiday season.