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  • n Landesbank Hessen-Thüringen Girozentrale Rating: Aaa/AAA
  • Rating: AAA Amount: Eu250m (fungible with four issues totalling Eu1.5bn first launched 05/11/98) Öffentlicher Pfandbrief series 859
  • Criticism of the European Investment Bank's EARNs programme grew this week following the supranational's decision not to launch a new benchmark, but to reopen an existing line. Under the programme announced in early March the EIB is committed to raising Eu2bn each quarter through benchmarks of at least Eu2bn or through the reopening of outstanding EARNs.
  • Dollar swaps bucked their volatile trend of the past few weeks as the 10 year swap spread was range bound after the expected September deluge failed to materialise. Ten year swaps traded between 91bp and 94bp for most of the week, before settling at around 92.5bp mid-market yesterday (Thursday). The five year is dealing at around 77bp/78bp.
  • Duke Capital and Goldman Sachs set the trend in the US market this week by issuing blow-out global bonds. Duke, led by Merrill Lynch and JP Morgan, made its debut in the global market with a $1.5bn three tranche offering that was increased by $500m and priced at the tightest end of a revised spread talk. Goldman launched an own account $1bn 10 year deal, increased from $750m.
  • Czech Republic Sole lead arranger WestLB is in the market with a non-recourse acquisition financing for Messe Düsseldorf which is buying Bruno Trade Fairs & Exhibition Company.
  • Ecuador's currency and debt plunged yesterday as investors braced themselves for an imminent default on its $96m Brady bond interest payment. The country is poised to make history on Tuesday (September 28) by becoming the first country to default on its Brady debt. Although Ecuador had desperately sought time to pay the $96m by deferring the payment in August for a month, finance minister Alfredo Arizaga said this week the government had still not decided whether it would meet the payment.
  • Criticism of the European Investment Bank's EARNs programme grew this week following the supranational's decision not to launch a new benchmark, but to reopen an existing line. Under the programme announced in early March the EIB is committed to raising Eu2bn each quarter through benchmarks of at least Eu2bn or through the reopening of outstanding EARNs.
  • Argentina n Republic of Argentina
  • General Motors Acceptance Corporation launched a Eu500m 4.5% three year note this week, yielding 4.47% at the re-offer or 50bp over the 4.5% 2002 Obl. All-in, the deal yielded 4.54% or 57bp over the Obl. A spokesperson for the borrower confirmed that the proceeds had been swapped to dollars, and that an after-swap cost of Libor plus about 30bp had been achieved. This cost is line with comparable US borrowing, she added.
  • n Alpha Credit Group plc Guarantor: Alpha Credit Bank AE
  • n ABN Amro Bank NV Rating: Aa2/AA