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When choosing risk management strategies, an institution should consider the trade-off between downside and upside potential.

SINGAPORE's Housing & Development Board (HDB) confirmed this week that it has mandated Citicorp as the arranger of its soon to be established S$2bn ($1.23bn) MTN programme. The US bank had been talked of as winner of the arranger's slot last month, completing a hat trick of mandates, following its launch of a S$300m deal for the IFC and S$300m deal for the Jurong Town Corporation (JTC).

THE HONG Kong market could be poised for a wave of January 'H' share offerings as Shandong International Power and Heilongjiang Agriculture race to become the first 'H' share to list in 1999. The moves come amid mildly improved sentiment following Hengan International's IPO and reduced volatility on the Hang Seng. Goldman Sachs holds the mandate for a $200m IPO for Shandong International Power following the dismissal of former joint lead Morgan Stanley Dean Witter, reportedly after strategist Barton Biggs made a number of remarks which displeased the Chinese government.

India The Indian government has announced plans to allow corporates to use proceeds from GDR to retire overseas debt. The government had been reluctant to allow the move because of the increased cost of debt in recent months. An official said there were now no restrictions on the use of GDR profits.

THAILAND's Financial Sector Restructuring Authority brought its largest asset sale to a disappointing close this week, as bidders demanded steep discounts for taking on delinquent business loans originated by the country's 56 liquidated finance companies. Candidates ignored six of the 45 tranches of business loans altogether, and bids on 30 tranches fell below the FRA's internal assessment of their minimum value.

FUJI SECURITIES this week launched a highly innovative club funding vehicle for Japanese corporates, raising ¥70bn for 17 companies whose access to the capital markets has been constrained by Japan's credit and liquidity crisis. Launched through special purpose vehicle One-For-All Asset Funding Co, the three year deal is a securitisation of Eurobonds issued by each of the corporates, specifically for this transaction.

THE SOARING domestic market has prompted the Korean government to list existing non-government shares in Korea Telecom, setting the stage for the company's Morgan Stanley-led flotation in the depositary receipt market next year. A total of 28.2% of the company is currently owned by domestic investors through OTC shares, with the remaining 71.2% held by the government. Of the non-government stock, around half is held by individual investors with domestic institutions and KT staff holding the balance. KT staff cannot sell their shares for seven years.

THE MANDATE to lead a ¥70bn bond for the Kingdom of Thailand insured by Japan's Ministry of Trade & Industry (MITI) has been thrown open to competition. Asian bankers said that although MITI had initially assigned the deal to Citicorp, it eventually bowed to pressure from the Thai government which argued that it was the issuer's prerogative to select lead managers. As a result, while the US bank remains on a shortlist, it has now been joined by a couple of other banks invited to bid by the government's fiscal policy office.

THE FIRST public securitisation from the Republic of Korea may be launched as early as today (Friday), with the Export-Import Bank of Korea (Kexim) hoping to raise $650m from an issue backed by its pool of promissory notes. Ironically, after a year which the bond markets have been all but closed to the republic's benchmark borrowers, the Ba2/BB+ rated bank may be able to issue its first offering of 1998 just before the markets close for Christmas.

* Moody's has assigned first time ratings to Land Bank of Taiwan, the island republic's third largest bank. Awarding an A2 long term foreign currency deposit rating, Prime-2 short-term foreign currency deposit rating and D+ Bank Financial Strength Rating, the agency said that its decision largely reflected the bank's, "long history and significant franchise in real estate and agricultural lending, as well as its stable and professional management team".