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* Municipality Finance Ltd Guarantor: Municipality Guarantee Board

TELECOM Italia's (TI) failure last weekend to win shareholder approval for its defence strategy against Olivetti's $65bn bid has forced arrangers Credit Suisse First Boston, JP Morgan and San Paolo-IMI to put the Eu20bn credit facility (backing the defence bid) back into its box while the telecom company considers its options for survival. Whether the loan is brought out again in the same shape and form remains to be seen. However, news yesterday (Thursday) of a possible link up with Deutsche Telekom and other rumours including the creation of shell company to take over TI via a highly leveraged deal has prompted many bankers to think that TI will not need such a large loan facility. And, if a jumbo loan is to be put in place it will be for a different borrower.

LEAD managers Merrill Lynch and Petercam have launched the sale of stock in Telinfo, the Belgian telecom services provider. The deal will raise $150m in new capital for the group. Bankers believe that the deal could herald a slew of cash calls from public Belgian companies and encourage private firms to take advantage of favourable conditions for a stockmarket listing.

* Associates Corp of North America Rating: Aa3/AA-

* BBV International Finance Guarantor: Banco Bilbao Vizcaya

SG AND Goldman Sachs this week executed the largest ever convertible bond issue, with a Eu3bn bond for French water and media group Vivendi to help fund its purchase of North American water company US Filter. Vivendi will complete its financing requirements through a Eu3.2bn sale of common stock later this quarter, which is likely to be run by the same team of global co-ordinators.

France Commerzbank, Crédit Lyonnais, HSBC (Paris branch), Natexis Banque and have closed general syndication of the Eu3.616bn two year credit for Rémy Cointreau.

Asia * RAMS Mortgage Corporation Ltd Series 1999-6E

Market commentary: Compiled by Glenn Blackley, RBC DS Global Markets, London. Tel: +44 171-865 1759

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THE KINGDOM of Belgium this week offered investors their first chance to buy a euro denominated sovereign FRN reference to Euribor when it launched a Eu2bn OLO FRN. Priced at a margin of Euribor minus 10bp, the three year deal successfully balanced Belgium's desire to optimise its funding costs with the market's need for a liquid sovereign floater -- particularly with many investors nervous about the direction of yields and the deepening crisis in Kosovo.