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CONTINUING uncertainty in the fixed rate dollar markets restricted benchmark issuance to global transactions for the Inter-American Development Bank and Household Finance Corp. The IDB's $1bn five year issue was not an obvious proposition given the supranational's exposure to Latin America. However, the deal was highly acclaimed by all involved with the issuer praised for its pragmatic approach to pricing.

Euro straights

* BES Finance Ltd Guarantor: Banco Espirito Santo e Comercial de Lisboa SA

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THE FRENCH equity-linked rush stepped up another gear this week as three companies took advantage of near-perfect issuing conditions and rampant investor demand to launch convertible and exchangeable bonds. Since the beginning of the year French companies have led the way in issuing equity-linked debt in the new euro market, with utility group Vivendi and retailer Promodes tapping the market already in January. First of this week's trio into action was construction group Bouygues, which launched a Eu460m bond issue via BNP Capital Markets and Crédit Lyonnais.

THE ALMOST year-long drought of Latin new equity issues was broken this week when the Argentine government priced its long-awaited initial public offering in mortgage bank Banco Hipotecario. The deal, led globally by Credit Suisse First Boston and Dresdner Kleinwort Benson, with BankBoston as local lead, raised $262.5m through the sale of 37.5m shares, representing 25% of the bank.

* Abbey National Treasury Services Guarantor: Abbey National plc

GREENWICH NatWest and WestLB are waiting for the outcome of Wolverhampton & Dudley's shareholder meeting on February 4 before they can progress with the syndication of the £425m short and medium term senior debt facility backing Marston Thompson & Evershed's £330m Pac-Man defence bid for Wolverhampton & Dudley. Wolverhampton & Dudley's shareholders will decide whether to accept Marston Thompson & Evershed's offer -- which involves the sale of tenanted pubs of both companies and a securitisation -- or to support the original Wolverhampton & Dudley bid that involves the sale of 170 Marston pubs for about £80m.

EMERGING market bonds climbed yesterday (Thursday), despite a continued slide in the Brazilian real, as local investors bought on rumors of an imminent fiscal announcement and a possible change of guard at the country's central bank. Brazilian C bonds jumped 1.25 to close at 52.75 and the country's Par bonds rose 1.75 to 53.75, while Argentina's 2017 globals soared two points to 92 and Mexico's 2026 globals rose 1.125 to 104.875.

US INVESTORS shrugged off Brazil's currency crisis and dived into both investment grade and US corporate junk bond deals this week. That enabled a flood of issues to come to the market, including Household Finance Corp's blow-out $1.3bn global bond. The 10 year deal, led by Salomon Smith Barney and Warburg Dillon Read, was increased from $1bn and was due to price this morning (Friday) at 126bp over.

THE REPUBLIC of Hungary this week made its keenly awaited own-name debut in the international bond markets, with the launch of the country's inaugural issue in the single European currency. The benchmark Eu500m 10 year offering was joint lead managed by DG Bank and JP Morgan, which emerged victorious from a bidding war that involved at least 25 banks.

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