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All weather derivative contracts for trading or speculative purposes should be accounted for at their fair value, with subsequent changes in fair value reported in earnings.

THE REPUBLIC of Korea's three policy banks are preparing for an active return to the international debt markets this year, although the first deal may not emerge until the second quarter. Of the three, only the Korea Development Bank was particularly active during 1999. It is widely expected to be not only the first to return this year, but also the first domestic bank to issue in euros.

Two telecom companies are this week demonstrating the importance of geographical location to investors despite the coming of the global communications age. Flag Telecom and Carrier1 have similar carrier operations and are generating considerable interest from investors. However, each issue is attracting a different type of investor, due to the location of the companies and their assets.

The outcome of Beijing Capital International Airport's (BCIA) $500m IPO became the subject of debate this week. ABN Amro claims the deal will be a success, but other bankers say demand for shares is sufficient only for a very modest oversubscription. The Hong Kong public offering closed January 26, and although the official result was not available yesterday (Thursday), sources in Hong Kong report demand for only 70% of the stock. The international placement is due to close today (Friday) New York time, with the final price announced later today, London time.

BNP PRIME Peregrine this week completed the sale of a block of 188m shares in Hong Kong listed Pacific Century CyberWorks Ltd, raising HK$2.97bn. The accelerated bookbuild offering was structured as a top up placement and met with strong demand from Asian and international investors. The transaction was completed on Tuesday January 25 and priced at HK$15.80, a discount of 5.1% to the market price of HK$16.65 when trading was suspended on Tuesday afternoon. The stock began trading again on January 26, and by Thursday January 27 the shares had traded up to HK$18.75.

SALOMON Smith Barney today (Friday) priced the ST Assembly & Test Services (STATS) IPO considerably above the indicated range, raising up to $284m for the Singaporean spin-off. The shares had been expected to price at between $12 and $14 per ADR but enormous demand for the deal led to pricing at $21 per ADR. A level of oversubscription has not been released but it is likely to surpass Chartered Semiconductor's 16 times coverage last year.

PHILIPPINES conglomerate JG Summit is shaping up to be the first international borrower from the republic this year, with ambitions to raise $200m in five year funds via Goldman Sachs. While officials at the US investment bank said that the launch of any Philippines' corporate deals are unlikely in the current Treasury environment, sources close to the company said a deal is expected within the next month, ahead of a prospective Lehman-led offering for the National Power Corporation (Napocor).

China Red Chip China Aerospace International Holdings Ltd has placed 357m existing shares at HK$1.80 per share, raising HK$643m ($83m). The deal was arranged by ING Baring Securities (Hong Kong) Ltd, sole bookrunner and lead manager, as a Hong Kong-style 'old' for 'new' top-up placement.

HYPOVEREINSBANK is poised to beat WestLB Panmure in the race to complete the first convertible for a Neuer Markt stock. HVB launched roadshows this week for IT firm Augusta Technologie's Eu75m five year issue while WestLB will launch the much larger Eu400m five year issue for EmTV on February 1.

MOMENTUM for Hanvit Bank's $500m-$1bn subordinated debt offering is already showing signs of gathering pace ahead of roadshows which open in Hong Kong on Monday. Observers said that there has been a shift in sentiment in Asia this week as investors grow comfortable about the huge offering and look further down the pipeline towards prospects for a second or third deal from the sector. As one banker said: "The key issue is no longer so much whether the deal can be completed, as how much more paper the market will be able to absorb after it.

Acer, Mosel Vitelic and Macronix all completed successful offerings this week as Taiwanese convertible bonds continued to find favour. Acer's issue was the most sought after - increasing from $230m (including greenshoe) to $300m in total. The issue was a larger replica of the innovative $150m zero coupon issue that Goldman Sachs completed for Far Eastern Textile a week earlier.

South Africa Joint arrangers Chase and Dresdner Bank Luxembourg are due to launch a $400m three year revolver for South African Breweries into general syndication.