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  • DOLLAR swap spreads went into a nosedive during the early part of the week, reflecting the cumulative pressures of recent new issue business, an ailing Treasury market, easier financing conditions in the repo market and generally improved global credit. By the end of the week the tightening bias was hidden by hefty rolls into both the new five year and the new 10 year note, but by Wednesday spreads were well below pre-Russian crisis
  • GOLDMAN Sachs' mandate to advise Scottish Power on the best way to maximise the proceeds of a sale of its telecom business has excited an already overheated sector. The second and third quarters of the year have long been expected to be dominated by primary issues from fixed line operators, and mobile telephony groups and European investors are already positioning themselves for these sales.
  • GLOBAL co-ordinator Goldman Sachs has launched the sale of stock in Société Européenne de Communication (SEC). The pan-European telecoms provider is seeking to raise around Eu313.5m in new equity capital to fund the new company's expansion across Europe. The deal will involve the sale of 95m class 'B' shares, with a greenshoe option of 14.15m additional shares.
  • THE BULGARIAN capital Sofia this week became the country's first issuer to tap the Euromarkets since 1989 with the launch of a Eu50m three year issue. Lead managed by Paribas, the pioneering B (S&P) rated offering featured an eye-catching 9.75% coupon to give a yield of 9.95% and a spread of 700bp over the 4.5% May 2002 Bobl on an issue/fixed re-offer price of 99.50.
  • THE REPUBLIC of South Africa this week made a well received return to the dollar markets for the first time since June 1997 with the launch of a $500m 10 year SEC-registered global bond. Lead managed by Merrill Lynch and Morgan Stanley Dean Witter the Baa3/BB+/BB rated issue had a 9.125% coupon to yield 9.18% or a spread of 370bp over the W/I 10 year US Treasury, on an issue fixed re-offer price of 99.645.
  • * European Investment Bank
  • SPANISH companies are expected to launch a flood of corporate equity in the coming weeks. The Madrid market has yet to recover from last summer's financial crisis, with the IPO market effectively remained closed since then. Analysts had hoped that a period of calm in the early months of this year would repair market confidence, but continuing stockmarket volatility has jolted the confidence of many potential issuers.
  • * Halifax plc Rating: Aa1/AA
  • THE PORTUGUESE government has launched the sale of shares in Brisa, the national toll motorway operator.
  • Domestic issuance: * Swiss Reinsurance
  • EARLY stage telecom credits appeared to have lost none of their appeal for high yield investors this week, with the successful pricing and placement of a dual tranche transaction for Sweden-based competitive local exchange operator, Tele1 Europe. Lead managed by Lehman Brothers, the size of the deal grew during the two week roadshow and was finally launched at the larger end of expectations as a dual currency issue comprising $150m and Eu100m tranches.