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  • The development of Malaysia's domestic capital markets took a new step forward this week with the launch of what is believed to the first bond issue by a non-Asian company. Raising funds for its local operations, US computer group Hewlett-Packard became only the third issuer in the domestic bond market this year with a M$160m ($42m) five year fixed rate offering.
  • The Korea Electric Power Corporation (Kepco) looks poised to achieve its long held ambition of launching a first euro denominated bond from the republic. Roadshows for its transaction are scheduled for the second week of July. Although the Baa3/BBB- rated group has not yet received final clearance from the Ministry of Finance and the Economy (MoFE), the issue is likely to be approved provided proceeds are not immediately swapped out of euros.
  • Presentations for the inaugural international borrowing programme from Hong Kong's Kowloon-Canton Railway Corporation (KCRC) will kick off in Germany next Tuesday. Although the new quasi-
  • n Japanese finance company Aplus Co completed its third domestic auto loan securitisation this week, as Sanwa Securities lead managed a ¥13bn deal through Aplus Asset Back Corp The Third Series. The deal offered nine tranches of soft bullet bonds, one of which matures every six months until December 2003. All the notes are rated Aaa by Moody's - pricing ranged from 0.275% on the shortest tranche to 1.275% on the longest.
  • The recovery in Asia's equity capital markets will shift up a gear next week with the launch of New World China Land's $600m IPO and the fourth attempt at listing for Shangdong International Power Development (SIPD). HSBC Investment Bank is expected to launch the New World China Land $525m (plus 15% greenshoe) deal next week following an announcement to existing convertible bondholders in the local press.
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  • JAPANESE property company Sumitomo Realty & Development Co is on the verge of launching - perhaps late this week - a groundbreaking securitisation of commercial real estate. Joint leads Daiwa Sumitomo Bank Capital Markets and IBJ Securities will sell ¥24.5bn of five year domestic bonds backed by five office buildings in Tokyo and Kawasaki, that Sumitomo Realty has placed in trust with Sumitomo Trust & Banking.
  • Merrill Lynch launched a $250m five year convertible bond offer for Natsteel Electronics this week. Orders were brisk yesterday (Thursday) for the deal, which closes next Wednesday. The bonds will have a 1% coupon and a conversion premium of 15%-20%, with a three year hard non-call and 130%-140% hurdle thereafter. They will offer a yield to maturity of between Treasuries flat and 75bp over.
  • Pacific Century Insurance's $120m to $150m IPO is on course to be a blow-out and some market observers have said that the deal is already covered despite not being due to close until June 29. Jardine Fleming is lead manager for the deal.
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  • The Taiwanese convertible market sprung back to life this week as new issues from Pou Chen Corporation and ASE Test provided the first deals since Delta Electronics' offering in February. The success of the new issues was as much as reflection of the region's rehabilitation as of the merits of either issuer - although bankers said that both companies had strong stories to tell.
  • Jamaica began roadshows this week for its first offering of the year, a $250m bond, that will be lead managed by JP Morgan. The deal will take the form of a Euro/144a offering, with a seven to 10 year maturity. Roadshows will wind up in New York on Monday with pricing later in the week.