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Market report Compiled by Vusi Mhlanzi,

* ABN Amro Bank NV Rating: Aa2/AA/AA+

Sterling renewed its status as one of the most attractive funding currencies on Monday, when sterling swap spreads widened sharply and opened an arbitrage window to borrowers looking for deep sub-Libor funding. As with wider US credit spreads, levels opened up across the board. By Wednesday, 10 year spreads were at 106bp compared to 98bp on Monday, while 20 year spreads were 12bp wider at 138bp, compared to 126bp on Monday. Thirty year spreads widened by 10bp to 128bp.

SAINT GOBAIN, the French glass manufacturer and building materials group, has secured a Eu2bn credit facility from BNP Paribas and Chase Manhattan that will finance its recommended bid for Meyer International of the UK. But almost immediately after news of the mandate came out earlier this week, the deal was surrounded by controversy with some bankers claiming that Chase had won a sole mandate and signed up with the company, only for the company to invite BNP in as a joint arranger. Neither house would comment.

SAINT GOBAIN, the French glass manufacturer and building materials group, has secured a Eu2bn credit facility from BNP Paribas and Chase Manhattan that will finance its recommended bid for Meyer International of the UK. But almost immediately after news of the mandate came out earlier this week, the deal was surrounded by controversy with some bankers claiming that Chase had won a sole mandate and signed up with the company, only for the company to invite BNP in as a joint arranger. Neither house would comment.

Sterling renewed its status as one of the most attractive funding currencies on Monday, when sterling swap spreads widened sharply and opened an arbitrage window to borrowers looking for deep sub-Libor funding. As with wider US credit spreads, levels opened up across the board. By Wednesday, 10 year spreads were at 106bp compared to 98bp on Monday, while 20 year spreads were 12bp wider at 138bp, compared to 126bp on Monday. Thirty year spreads widened by 10bp to 128bp.

* Eksportfinans A/S Rating: Aaa/AAA

* Dexia Municipal Agency Rating: Aaa/AAA/AAA

Dresdner Kleinwort Benson and Schroders will launch on Monday a Eu250m IPO for German measuring device firm Techem. Bankers said pre-marketing for the deal was well received this week and the Amtlicher Handel listing should take place in the final week of February. The bookbuild will run from February 14 to February 22.

As foreshadowed in Euroweek 567, DLJ has been officially confirmed as arranger of the senior debt backing the leveraged buy-out of the automotive business from Invensys. Senior debt totals $325m, although DLJ is also arranging a subordinated debt piece.

The US Treasury’s decision to cut 30 year supply and buy back longer dated debt sparked chaos in US bond markets this week as traders, investors and syndicate officials searched desperately for points of reference in the changed market.

* Bank of America NA Rating: Aa1/AA-