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  • THE HIGH GRADE cross-over investor flow the Latin markets have been hoping for all year came into the market in force this week to snap up a $1.5bn 8.5% blowout 5-1/2 year global bond by the United Mexican States.
  • UPM-Kymmene has increased the ceiling off its euro1 billion ($951.1 million) global MTN shelf to euro2 billion.
  • * AES Drax Energy Ltd Rating: Ba2/BB-
  • TURKEY'S Vakifbank raised Eu200m via a three year FRN this week, after late demand for the generously priced issue saw it increased on Monday from Eu125m at launch last Friday (July 21).. Rated B1 by Moody's, the deal, which was lead managed by Merrill Lynch, Schroder Salomon Smith Barney and Garanti Bank, was the largest euro denominated transaction by a Turkish non-sovereign issuer.
  • THE European high yield market absorbed its second chemicals deal this week, as Ciba Specialty Chemicals' former performance polymers division - Vantico - sold Eu250m of 10 year bonds via Credit Suisse First Boston. The issue, which refinances debt from the company's buy-out, was priced with a 12% coupon, to give a spread of 679bp over the Bund.
  • TURKEY'S Vakifbank raised Eu200m via a three year FRN this week, after late demand for the generously priced issue saw it increased on Monday from Eu125m at launch last Friday (July 21).. Rated B1 by Moody's, the deal, which was lead managed by Merrill Lynch, Schroder Salomon Smith Barney and Garanti Bank, was the largest euro denominated transaction by a Turkish non-sovereign issuer.
  • THE European high yield market absorbed its second chemicals deal this week, as Ciba Specialty Chemicals' former performance polymers division - Vantico - sold Eu250m of 10 year bonds via Credit Suisse First Boston. The issue, which refinances debt from the company's buy-out, was priced with a 12% coupon, to give a spread of 679bp over the Bund.
  • ECUADORIAN debt surged as much as 22% yesterday (Thursday) after the government announced an offer to swap $6.65bn of defaulted Brady and Eurobonds for a choice of either 30 year or 12 year global bonds in return for a 40% reduction in principal on the defaulted debt. After months of delays, Ecuador said it would offer $2.7bn in 30 year global bonds with a 4% semi-annual coupon that steps up 1% yearly to a 10% maximum.
  • HYPOVEREINSBANK's proposed Eu7.8bn merger with Bank Austria is a strategic move for dominance of the growing central and eastern European market. HypoVereinsbank's executives see their future as a regional bank in a continent dominated by regional banks, and they are staking their claim to central and eastern Europe. If approved, the deal would create the third largest bank in Europe, or fourth largest once the UBS/PaineWebber merger is approved.
  • Lithuania. The Republic of Lithuania has added a Eu75m tap to its five year offering launched in February, creating a Eu325m issue. The original lead managers, CSFB and Deutsche Bank, led the increase.
  • Germany * Credit Suisse First Boston priced Aeco's Eu42m tranche at the top of the range this week and the optical equipment testing company traded up significantly on its first day.
  • Market report: Compiled by Glenn Blackley,