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The FEDERATIVE Republic of Brazil opened the door to new possibilities for emerging market issuance in the euro sector this week when it sold a Eu700m three year benchmark offering — the largest ever euro-denominated bond launched by a Latin American issuer.

Banca di Roma broke new ground in European structured finance this week by issuing a public securitisation backed entirely by non-performing loans. Italy's banks, burdened with some of the highest bad debt ratios in western Europe, have long looked to securitisation as a potential solution, but the legal impediments to asset backed finance in Italy have bulked large - the first securitisation of any kind by an Italian bank came only 13 months ago.

In a further sign of the growing maturity and variety of the Australian securitisation market, Commonwealth Bank of Australia this week launched the country's first synthetic collateralised loan obligation, transferring risk on a $1.5bn portfolio of credit exposure. Lead manager CBA will price Series 1999-1 Medallion Credit Linked Trust on Wednesday. The deal comprises A$92m of senior notes rated triple-A by Moody's and Standard & Poor's, A$46m of single-A notes, A$21m of low triple-B paper and an A$21m 'D' class, rated Ba3/BB.

The Bundesaufsichtsamt für das Kreditwesen, the German Federal Banking Supervisory Authority, recently issued what it believes is the final circular on the capital adequacy treatment of credit derivatives.

Jardine Fleming achieved a stunning success this week with the completion of a HK$1.06bn ($140m) IPO for Pacific Century Insurance (PCI). Bankers said that the placement tranche of the deal was around 21 times oversubscribed and syndicate members reported heavy scaling back of allocations, even for major clients. The shares priced at the top of the HK$5.26 to HK$6.28 range and while bankers connected to the deal said it could have priced above the set range, rules governing concurrent public domestic and international offerings prevented this.

CSFB and Morgan Stanley Dean Witter launched a A$400m IPO for Austar this week while Warburg Dillon Read completed a A$168m sale of Cable & Wireless Optus for Seven Network. The Austar sale is expected to price on July 17 and bankers said there had been a positive reaction to the pay TV and broadband provider during premarketing. A range of A$4.10 to A$4.70 has been set.

The Asian Development Bank (ADB) is to return to the international bond markets over the coming two weeks with a new benchmark transaction, following the completion of global roadshows which were wrapped up in Europe this week. Bankers said that although the supranational is looking at a number of different options, it favours a jumbo global yen offering swapped back into dollars. Said one banker: "A decision is only likely to be taken after treasury officials return to Manila early next week.

n Speculation is mounting that the People's Republic of China is preparing to re-enter the international debt markets within the next two months. Market players said that government officials have spent the past two weeks talking with banks about printing a new deal ahead of the summer.

Roadshows begin on Monday for the $850m sale of Posco ADRs, while the Korea dealflow continues with details emerging of the syndicate for the forthcoming $1bn recapitalisation of Hanvit Bank. Last week the government filed with the SEC for the sale of a 7% stake or 27m Posco ADRs. Pricing for the issue will take place on the July 14 following an accelerated bookbuild led by Salomon Smith Barney and Merrill Lynch.

The Sri Lankan government is to make a final decision within the next few days over the choice of ratings adviser to its inaugural international bond offering. Having received 13 proposals, government officials have decided not to call for full presentations because the country is keen to get ratings advisory work underway as quickly as possible.

The institutional tranche of Golden Agri Resources' $400m IPO closed comfortably subscribed this week despite a slowing of interest in the final days before pricing. The 270m share ING Barings and Merrill Lynch-led deal priced at the low end of the $0.61 to $0.75 range at $0.638.