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The idea that it is possible to purchase a foreign exchange option without paying a premium is so attractive that skepticism would be justified.

The US Treasury's planned buy-back of debt early this year promised to enhance the role of agencies Fannie Mae and Freddie Mac as alternative benchmarks. But only weeks later, questions over the two agencies' government links emerged, testing the borrowers' funding strategies to the limit. Nevertheless Linda Knight, senior vice president and treasurer at Fannie Mae, and Jerome Lienhard, senior vice president, investment funding, at Freddie Mac, remain confident that the two will enjoy a bright future. Interviewed by Jo Richards.

Formed by the combination of the Japan Development Bank and Hokkaido-Tohoku Development Finance Public Corporation, the Development Bank of Japan is set to become a familiar borrower on the domestic and international markets. Euroweek recently met with Yoichiro Yokoyama, director of the treasury team at the DBJ, to discuss the borrower's plans. Interviewed by Mark B Johnson.

Competition for funds spurred by the introduction of the euro last year has prompted European agencies to approach investors more carefully than ever before. Intensive marketing, thorough explanations of government support, and large liquid benchmarks have all been employed in the drive for surrogate status. And when the euro market has proved tough, agencies have moved to position themselves in currencies such as dollars and yen. Interviewed by Neil Day.

THE DBS Group, the largest bank in Southeast Asia and one of the region's premier credits, has mandated Morgan Stanley Dean Witter for a $500m 10 year subordinated debt issue. It will follow DBS's outstanding $750m subordinated notes due 2009, which have been upgraded by Moody's from A1 to Aa3 (S&P rate the bonds at A-).

TWO OF China's most popular internet portals, Sina.com and Netease.com, are on track to list on Nasdaq in April. The issues should enjoy strong demand from investors who have witnessed the stellar performance of issues such as China.com and more recently Tom.com. China.com is far less developed than either Sina or Netease in terms of average daily views and registered users. Tom.com is still little more than a business plan.

The Korea Development Bank completed its debut Eu500m five year bond issue yesterday (Thursday) - forcing European investors to prove their confidence in the recovery of the Korean economy and in the process forging an important benchmark for itself and Korea. Lead managed by Barclays Capital and Deutsche Bank, the offering carries an annual coupon of 6%, an issue price of 99.513% to yield 120bp over the Bobl 134 government bond.

ABN AMRO was active in the convertible market this week with the completion of a Eu100m issue for Dutch firm Fugro, the exercise of a Eu50m greenshoe for Getronics and the launch of premarketing for a combined deal for Wegener. The Eu100m Fugro deal was priced at the expensive end of the range. The five year subordinated bond came with a 21% premium from a range of 21%-28%. There was a coupon of 4-3/4% - at the top of the 4%-4-3/4% range.

Morocco Euroweek understands that banks will be invited to bid for the long term financing of the Médi Telecom project within the next few weeks. A preliminary information memorandum should be sent to banks by mid-April.

Hong Kong Dairy Farm International Co has awarded the mandate for a US dollar financing to ABN Amro, Chase Manhattan Asia and Standard Chartered.

Australia Banks invited to join the A$1.15bn dual tranche project financing for One.Tel Networks Finance have requested an extension for credit assessment. Co-ordinating arrangers Chase Manhattan Australia and Toronto-Dominion Australia will close the sub-underwriting stage early next week.