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ISMA, LCH pencil agreement

LEAD managers ABN Amro Rothschild and Goldman Sachs launched a Dfl 1.3bn to Dfl 2bn convertible bond on behalf of the acquisitive Dutch supermarket group Koninklijke Ahold as foreshadowed in Euroweek last week. The deal forms part of a Dfl 4bn capital increase with between Dfl 2bn and Dfl 2.7bn to be raised in the form of common stock. The securities will be offered simultaneously to investors, who were this week marketed with convertible terms which include a coupon of 2-1/12% to 3% and a conversion premium of 22% to 27%. The five year bonds have hard call protection for three years.

THE MINISTRY of Public Enterprise in Dublin has approved a preliminary plan put forward by the national carrier, Aer Lingus, to establish an alliance with a strategic industrial partner. This move will represent the first stage in the government's plan to privatise Aer Lingus and follows the authority's announcement that it would privatise Telecom Eireann.

Ghana Chase Manhattan has launched general syndication of the $250m corporate credit for Ashanti Goldfields Company.

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THE REPUBLIC of Argentina is considering a $2bn local syndicated loan as an alternative to coming to the international bond markets this year. Resigning itself to the fact that global bond markets could well be shut to emerging market issuers for the rest of this year, the republic's borrowing team has latched on to the local loan market as the place to get the best priced funding in the three to five year maturity range and in one $2bn hit.

China Three banks have joined Fujian Pacific Electric Co's $526.391m syndication for the Meizhou Wan Power Project as senior managers comprising Artesia Bank, DNIB Asia and Banco Exterior de España committing $10m each.

Australia ANZ Investment Bank is syndicating an A$100m acquisition financing for McKechnie Metals Pty.

Market commentary Compiled by Glenn Blackley, RBC DS Global Markets, London. Tel: +44 171-653 4557

MERRILL Lynch and Lehman Brothers are pressing ahead with the sale of stock in Israeli government controlled Bank Leumi despite poor market conditions and investors' flight from emerging equity markets. The privatisation follows the previous sale of the bank's equity to international and local investors last year in a deal that was structured as a local offering with international placement by the two US firms.

AN END to the political and economic limbo in Russia looks in sight after president Boris Yeltsin on Thursday nominated Yevgeny Primakov as prime minister. Primakov replaces Viktor Chernomyrdin, whose candidacy had twice been rejected by Russia's parliament. News of Primakov's nomination helped to boost investor sentiment towards Russia and by Thursday's close in London the rouble had recovered to trade at Rb13.25/$ -- having slumped to a low of Rb23/$ on Tuesday after the Duma rejected Chernomyrdin's candidacy for a second time.