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LATIN American stocks, bonds and currencies were pounded down to new lows yesterday (Thursday) as fears of a Brazilian devaluation sparked a multi-billion dollar exodus from the country by panicking locals and foreigners. Russia's woes faded into the background and Brazil came to the fore as the focus of emerging market panic as a $2bn+ net outflow of funds sent its stockmarket plunging 15.8%, its biggest one day percentage drop in 11 years.

DRESDNER Kleinwort Benson and Paribas have started bookbuilding for the sale of stock in German software solutions group Brokat Infosystems. Following two weeks of premarketing, the lead managers are looking at a surprisingly firm range of orders given the state of the market and have indicated a price range of between DM53 and DM64.

* Republic of Austria Rating: Aaa/AAA

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Croatia Commerzbank has signed the DM25m three year facility for Varazdinska Banka.

ATTENTION shifted away from Russia to central and eastern Europe this week as the syndicated loan market took a step back to analyse the impact that the Russian crisis is having on the rest of the region. To most bankers, the impact is so severe that they have cut nearly all credit lines and postponed transactions that were unfortunate enough to be in the market.

* Kingdom of Denmark Rating: Aa1/AA+

Lebanon * Republic of Lebanon

THE REPUBLIC of Lebanon this week became the first emerging market sovereign to brave the international bond markets since the onset of the Russian financial crisis. The B1/BB-/BB- rated issuer launched a seven year offering that was quickly upped from $250m to $350m on the back of strong Middle Eastern demand. Lead managed by Merrill Lynch, the transaction featured a 8.75% coupon and 99.04 issue/fixed re-offer price to give an interpolated spread of 390bp over the 5.25% August 2003 and 5.625% 2008 US Treasuries.

THE REPUBLIC of Lebanon this week became the first emerging market sovereign to brave the international bond markets since the onset of the Russian financial crisis. The B1/BB-/BB- rated issuer launched a seven year offering that was quickly upped from $250m to $350m on the back of strong Middle Eastern demand.

* The political and financial crisis in Russia has forced the government to consider delaying the sale of stock in Rosneft, the last major state owned oil group. Fearing that foreign and domestic investors would shun the opportunity to purchase stakes in the group Victor Ott, a Rosneft director, said this week that any attempt to proceed with the privatisation should, for the moment, be scrapped.

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