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DEPFA TOOK the latest step in its strategy to place itself in a league of its own yesterday, with the launch of a global Pfandbrief of at least Eu3bn -- the largest ever jumbo and the largest non-government fixed rate bond in euros. When the deal is priced and sized today (Friday), the fate of DePfa's bid to fashion itself an asset class in front of the rest of the jumbo Pfandbrief market will become clear.

FLOTATIONS of European companies taken private in management and leveraged buy-outs are shaping up to be a major theme in 1999. This week Warburg Dillon Read started the pre-marketing for two such deals: the IPO of William Hill, the UK bookmaker bought by Nomura; and the float of Neopost, the French mailing machine business controlled by BC Partners.

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* Three Spanish savings banks this week launched a Eu351.5m (Pta58.5bn) mortgage securitisation -- Spain's first in the single currency. Seville based Caja de Ahorros El Monte, Catalonia's Caixa de Terrassa and Caja General de Ahorros de Granada pooled 7,682 mortgages in TDA 6, a vehicle managed by Titulización de Activos. EBN Banco lead managed the bond -- Caja de Ahorros del Mediterráneo, SG, Crédit Agricole Indosuez and Bank Austria joined the three issuers as underwriters. Market participants believed a third to a half of the paper was sold to investors -- the issuers retained the rest for use as repo collateral.

PREMARKETING was in full swing this week for HypoVereinsbank's Eu2.1bn collateralised loan obligation, Geldilux 99-1. HVB and joint bookrunner Goldman Sachs held roadshows in Frankfurt, London and Paris, while teams of salespeople roved Europe for meetings with individual investors. "We are very, very proud of this issue," said Oliver Reisinger, head of primary markets at HVB. "We are one of the very few banks in the world that could do a deal like this."

CREDIT Suisse First Boston and Salomon Smith Barney will forge ahead with the launch of Videsh Sanchar Nigam Ltd's (VSNL), $220m GDR offer next week, putting to one side potential concerns over the long term future of the telecom industry in India as well as the confusing financial demands of the government. VSNL will launch in Mumbai on Wednesday, after a final meeting over the weekend between the lead managers and the government to discuss the results of pre-marketing and the potential implications of a report on the future of the telecom industry.

JARDINE Fleming has won the mandate for a $250m Manila Electric Company (Meralco) exchangeable to sell the Philippine government's 10% stake in the company. The deal -- which will have a five or seven year tenor -- has been approved by the privatisation committee and should be completed by the end of February.

Three Japanese auto finance companies are on the verge of launching triple-A rated securitisations in the Euromarkets. Consumer finance company Japan General Finance will likely be the first to issue, with an auto loan backed bond worth some $320m. Deutsche Bank will lead manage the deal through special purpose vehicle Hexagon Funding.

FOLLOWING last week's successful reopening of the yen Euro-convertible market by Nedec Corporation, Nichiei and Sega Enterprises this week vied for the mantle of the largest issuer from the sector as activity increased against a background of a solid performance by the Nikkei in recent weeks as well as continuing demand for yen exposure. Bankers said an upswing in sentiment on Japan, the general willingness of investors to look at new opportunities at the beginning of the year and low premiums had buoyed the market. In addition, a number of companies had been seeking to access capital for some time and would likely jump at the window of opportunity now offered.

JAPAN'S fourth largest leasing company, Showa Leasing, launched a $255m securitisation in the Euromarkets this week, lead managed by IBJ International. The deal is the first asset backed issue from the Japanese leasing sector since Japan Leasing Corp filed for protection from its creditors in September. JLC is by far the dominant equipment lease securitiser in Japan, and its reorganisation under court protection threatened to shatter confidence in the product as a whole.

Australia The Australian government has appointed ABN Amro, Credit Suisse First Boston and JB Were as co-ordinators for the sale of a further 16% stake in telecom company Telstra. The line-up is identical to that for the successful first tranche sale in November 1997.

ING BARINGS is on the verge of admitting defeat by pulling Heilongjiang Agriculture's $200m IPO this weekend. But while the move deepens the gloom settling over China's H-share sector, Goldman Sachs will launch Shandong International Power next week, apparently safe in the knowledge that 40% of the sale is covered by a strategic investor. The conflicting news crowns a week of worry for Hong Kong's equity capital market bankers. Amid a steadily worsening stream of results from once star performers, such as China Southern in the red chip and H-share sector, the withdrawal of the -- albeit small -- Zhujiang Steel Pipe Holdings IPO further demonstrated the instability of the market.