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LANDESBANK Kiel and WestLB have had to reduce the $150m multicurrency term loan facility for Bolig-og-Naeringsbanken (BN Banken) to $100m. The arrangers blamed the volatile market conditions for the cut in size. However bankers suggest that appetite for Norwegian debt has waned due to the enormous amount of debt required by Norwegian borrowers over the past nine months and particularly since June.

A renewed wave of volatility threatened to sweep through the financial markets in eastern Europe as a result of growing investor concerns over the measures proposed by Russia to alleviate its economic predicament. Western banks yesterday (Thursday) urged the Russian government to rethink the terms of a debt workout scheme where domestic investors would receive preferential treatment over international investors, which hold an estimated $15bn-$17bn of GKOs.

Denmark ABN Amro, Citibank and Bank of Tokyo-Mitsubishi have closed the co-arranging phase of the $500m credit for Borealis, the Danish petrochemicals company.

Market commentary Compiled by Tawanda Nyandoro, RBC DS Global Markets, London. Tel: +44 171-653 4870

* European Investment Bank Rating: Aaa/AAA

The Swiss government has moved into the final stage of its privatisation of shares in Swisscom AG. The Swiss authorities revealed this week its intention to sell just 30% of the national operator, and at a conservative valuation range. The government's decision to proceed with a smaller than expected divestment at a more generous price is the first concrete sign that even safe haven stocks from traditionally safe-haven markets are vulnerable to the upheaval in world stockmarkets.

Hopes that some stability may return to the international bond markets built up early in the week but were snatched away again yesterday (Thursday) by yet another sharp fall on the world's equity markets. This time, the reasons for the short lived nature of the confidence were two-fold: first, concerns reappeared about Brazil's ability to withstand a potential withdrawal of international capital; second, Fed chairman Greenspan and the UK monetary policy committee dampened hopes that imminent rate cuts would be introduced to help ease the global financial and economic crisis.

Chase Manhattan has won the mandate to arrange a senior debt facility backing Wassal's proposed acquisition of Thorn Lighting Group. The £351m bid counters a £321m bid for Cooper Industries of the US. Syndication will be aimed at Wassal's relationship banks.

VODAFONE Plc, the UK mobile telecoms group, is back in the international syndicated loan market with a £300m facility, arranged by Barclays, HSBC and National Australia Bank. The 3-1/2 year facility carries a margin of 25bp over Libor - the same level it paid in March when it mandated Barclays and Union Bank of Switzerland to arrange a Dfl 1.2bn five year revolving credit.

Investor presentations began in Singapore yesterday (Thursday) for what may prove to be the only public debt transaction out of Asia during the second half of the year - a $300m World Bank guaranteed deal for the Electricity Generating Authority of Thailand (EGAT). With ABN Amro as lead manager, separate ratings for the issue and borrower should be released today (Friday), the former potentially piercing the Kingdom of Thailand's BBB-/Ba1 rating by several notches. Fixed income analysts said that the prospective 10 year deal has been given a boost by the news that the World Bank has strengthened the structure with the provision of a rolling coupon guarantee.

Hopes that some stability may return to the international bond markets built up early in the week but were snatched away again yesterday (Thursday) by yet another sharp fall on the world's equity markets. This time, the reasons for the short lived nature of the confidence were two-fold: first, concerns reappeared about Brazil's ability to withstand a potential withdrawal of international capital; second, Fed chairman Greenspan and the UK monetary policy committee dampened hopes that imminent rate cuts would be introduced to help ease the global financial and economic crisis.

France The syndicated loan market was buzzing last night with reports that Carrefour has mandated three banks - Paribas, Citibank and Banque National de Paris - to arrange a Ffr19bn jumbo facility to finance the purchase of the remaining shares in Comptoirs Modernes.