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ABN AMRO this week raised $1.25bn in preference shares in the largest deal of its kind yet from a non-Japanese bank. Led by Merrill Lynch and Salomon Smith Barney (joint books) and ABN Amro as joint lead, the bond started as a domestic US transaction, but ended up as a larger, globally targeted trade.

ABN AMRO this week raised $1.25bn in preference shares in the largest deal of its kind yet from a non-Japanese bank.

THE FRENCH government will launch the next leg of its privatisation programme after the summer break with the sale of stock in insurance group Caisse Nationale de Prévoyance (CNP) through global co-ordinator ABN Amro Rothschild. The appointment is a coup for the Dutch firm and is a spin-off from its role as advisor to the Trésor. Although ABN is joined by CDC Marchés and Warburg Dillon Read as joint lead managers, this is the first time the French government has appointed a foreign bank as lead for a privatisation.

Ghana Citibank has won the mandate to arrange a $40m term loan for the Agricultural Development Bank of Ghana. The facility carries a margin of 140bp over Libor. Citibank is approaching co-arrangers, offering 48bp flat for $5m commitments.

THE REPUBLIC of Argentina, Latin America's neediest sovereign borrower, is developing a number of contingency measures to bolster its financial resources and ensure it can fulfil its borrowing requirements for the rest of the year and first quarter 1999, despite worsening market conditions. Argentina has already raised this year's funding target. However, it is seeking another $2bn through an issue of so-called "patriotic bonds" similar to those launched during the 1995 Mexican crisis. Those bonds would be sold to local and international banks with a vested interest in the financial health of the country.

China The general syndication of Fujian Pacific Electric Company's $526.39m project financing for its Meizhou Wan power project is going well, according to the arrangers -- BA Asia, Banque Paribas, Credit Suisse First Boston, and Tokai Bank -- who expect around 15 banks to sign up by the end of the month.

Australia Delta Gold NL is arranging a A$60m revolver for its financing arm Delta Gold Management. The facility is split between a $40m five year amortising tranche 'A' and a $20m 364 day bullet portion. The two tranches will pay respective margins of 65bp and 45bp over BBSW. There is a 10bp front end fee offered in both tranches.

Market commentary Compiled by Enrico Massi, RBC DS Global Markets, London.

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FOLLOWING last week's successful, if bumpy, New York Stock Exchange debut by German software SAP, chemical group BASF this week confirmeded that it too will join the big board. Since 1993, a number of the larger German industrial and banking groups have looked toward the US markets to access the deep pockets of capital on offer as well as to facilitate expansion through the purchase of US companies, using fully registered shares.

GLOBAL co-ordinators Schroders and Mediobanca may be joined in senior roles by Warburg Dillon Read and Lehman Brothers in the sale of stock in Banca Nazionale del Lavoro (BNL). The Italian government plans to sell a Lit7tr stake in BNL in October and bankers speculate that the addition of two international firms indicates that the bank expects a large distribution of shares outside the home market.