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Argentina * Republic of Argentina

* ASR Bank NV Guarantor: ASR Verzekeringsgroep NV

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BANKERS ARE looking out for a jumbo financing for Finnish energy group Fortum, which is buying power plants worth Eu1.85bn from forestry company Stora Enso. The acquisition could lead to a loan of rare proportions and the chance to lend to a debut borrower. Fortum was created from the merger of Neste and IVO, both of which have tapped the loan market in the past.

When Heinz brought its first eurodollar transaction in two years this week, it looked to many analysts that the deal was arbitrage driven. The $300m 7% two year notes, lead managed by JP Morgan yielded 7.04% at the re-offer, or 60bp over the December 2001 Treasury. All-in the yield was 7.137%, or about 69bp over the Treasury.

POTENTIAL arrangers of the Eu180m refinancing facility for Türkiye Garanti Bankasi are awaiting news today (Friday) of the final list of top level banks. The one year term loan is due to set a benchmark for Turkish banks in the loan market this year. Pricing at the end of 1999 rose for Turkish bank borrowers, due to fears over Y2K readiness and concerns about market capacity. But price talk this week puts Garanti's margin this year below 1999 levels.

DEBUT borrower Infineon Technologies AG has awarded a mandate to Barclays Capital (books) and Commerzbank (books, facility agent) to arrange a Eu600m revolver. The borrower, which produces semiconductors, is a wholly owned subsidiary of Siemens, but is borrowing as a standalone entity. Infineon is using this transaction to establish its own group of core relationship banks as part of the company's move towards greater independence from the parent company.

Cazenove and Goldman Sachs sold a £250m placement for Pearson this week that could redefine the internet strategy of scores of media companies considering spin-off flotations. The trade, conducted on Wednesday morning, ended speculation that the UK media company would launch the first European tracking stock based on its online assets - effectively creating a company within a company - or float those assets as a separate company.

Fitch IBCA this week downgraded FILMS Plc, the innovative securitisation of revenues from an Italian film library that Merrill Lynch arranged for the Cecchi Gori media group in February 1998. The downgrade from A- to BBB- is almost unique in European structured finance, both in its severity and in that it reflects concern about the deal's fundamental creditworthiness, rather than an unrelated change in a counterparty's rating.

The Republic of Italy will today access the global dollar market for the first time since September 1993 with a $2bn five year transaction. The prestigious mandate was awarded to Lehman Brothers and JP Morgan late on Thursday. A spread in the low 50s over Treasuries is expected, leading some market participants to suggest that the deal will have a rough ride. "There is a lot of supply in five years. This adds another $2bn and, if it comes in the low 50s, it will be expensive compared to Canada which trades at 51bp over Treasuries," said a leading syndicate official.

* Hamburgische LB Finance (Guernsey) Ltd Rating: Aa1