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FRENCH building materials producer Lafarge this week offered investors a glimpse of the future euro debt market with the launch of a Eu500m eight year issue -- the largest fixed rate euro issue for a rated corporate. The transaction, launched to refinance Lafarge's bank debt accumulated following its takeover of UK company Redland, hit the market at 40bp over following extensive roadshows across Europe.

Arrangers BancAmerica Robertson Stephens, SG and Barclays (Miami) have achieved an oversubscription on their two year loan style FRN for Banco Hipotecario Nacional and the facility has been increased from $150m to $200m. The facility which was priced between 150bp and 200bp over Libor was signed on May 28.

THE Republic of Lebanon is pressing ahead with plans for its second Euromarket transaction this year, despite suffering a blow to its ratings this week. Yesterday (Thursday) Fitch IBCA cut its BB sovereign rating for Lebanon to BB-, citing the country's rising levels of debt which the agency said made it likely that Lebanon would lose its net creditor status by 2000.

* BBL International Finance SA Guarantor: Banque Bruxelles Lambert

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THE SUPPLY of small to medium cap stocks to international investors from the Frankfurt stockmarket continues to grow -- offering new opportunities for exposure to the German economy at a time when the equity market is booming. Over the past weeks, concerns about an increase in German rates and another Asian crisis have checked the surge of Europe's stock markets, which have soared this year.

GLOBAL co-ordinator HSBC has launched the sale of stock in MaltaCom, Malta's national telecom operator. The offering, the first international equity transaction from the island state, heralds the start of the country's privatisation programme. The $90m sale of GDRs will involve some 40% of the company's equity capital being placed in public hands. Following two weeks of premarketing, the lead manager has indicated a price range to potential investors of between $12.44 and $13.62 (M£82 to M£89.5).

Bahrain Up to five co-arrangers are to join the $100m syndicated term loan for Bahrain International Bank. Arrangers are Banque Nationale de Paris, Chase Manhattan, Gulf International Bank, ING Barings and SG. The three year debt is priced at 70bp over Libor and general syndication is set to launch next week.

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BANCO Pastor, a Spanish bank based in Galicia, has established a $1bn Euro-MTN programme under which it plans to launch an inaugural transaction early next week. The bank's debut in the international capital markets is expected to be a dollar floater. Deutsche Morgan Grenfell has arranged the programme and will be joined in the dealer group by ABN Amro, Banco Pastor, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch and Paribas.

THE ALREADY decimated Latin equity new issue market suffered another serious setback this week when Merrill Lynch shelved the long awaited $2bn issue of government shares in Brazilian privatised iron ore producer CVRD as well as a $210m offering by Argentine company CEI Citicorp Holdings. The CVRD deal, slated for filing with the US SEC this week, may not surface until 1999, while the CEI deal, scheduled for pricing on Tuesday, is shelved indefinitely.

* Merrill Lynch will shortly launch the sale of convertible bonds for Banca Popolare di Milano (BPM). The issue, mandated last year, will offer investors 10 year bonds priced at BTPs less 60bp to 110bp, and with a conversion premium of between 15% and 20% above the reference price of BPM shares. A reference price is to be used to accommodate the placement of bonds to Italian retail investors through an OPV which will be launched with terms on yield to maturity, conversion premium and maximum reference price. The latter may represent the last sale but could theoretically be any level chosen by the lead manager.