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LAND Sachsen-Anhalt this week launched the first rated issue for a German state, a DM2bn 10 year Euro-Asian bond lead managed by Deutsche and Goldman Sachs. Previous issues for individual German states and the collective Länder jumbos have all been unrated. Sachsen-Anhalt was recently awarded a Aa3 rating by Moody's and a AA- rating from Standard & Poor's.

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Finland Deutsche Bank, Enskilda Debt Capital Markets and Merita have closed general syndication of the speedily arranged DM450m multicurrency revolving credit for Rauma Corporation, Rauma USA, and Rauma Asia-Pacific. The deal was well supported in general syndication and has been oversubscribed. However, the borrower has decided against increasing the size of the facility. Signing will take place in mid July.

SES IPO heads for blow-out as growth story lures demand LEAD MANAGERS Deutsche Bank, Dresdner Kleinwort Benson and Morgan Stanley Dean Witter will today (Friday) execute their global offer of shares in Société Européenne des Satellites (SES).

LEAD MANAGERS Deutsche Bank, Dresdner Kleinwort Benson and Morgan Stanley Dean Witter will today (Friday) execute their global offer of shares in Société Européenne des Satellites (SES). Investor interest in the deal has blossomed steadily since the company announced at the beginning of this year that it was planning to float. "This kind of story makes a change from the large state sales which have recently run into investor fatigue," said one salesman.

SIRONA Dental Systems, one of the world's leading manufacturers and suppliers of professional dental equipment, this week priced its DM170m high yield bond. The issue was launched without US registration rights in a move illustrating the growing depth of the European investor base for sub-investment grade corporate debt. Proceeds from the deal will refinance a DM170m bridging loan which formed part of the financing for the management buy out of Sirona Dental Systems from Siemens. Launched at a spread of 440bp over Bunds the deal was priced at the lower end of the official price talk. This was an achievement given the difficult market environment, claimed lead manager Warburg Dillon Read.

Market commentary Compiled by Tawanda Nyandoro, RBC DS Global Markets, London. Tel: +44 171-865 1087

* Asda Group plc Rating: A2

* Deutsche Siedlungs- und Landesrentenbank Rating: Aaa/AAA (S&P/IBCA)

AFTER A hotly contested bidding process Apicorp, Banque Paribas and Credit Suisse First Boston have won the $615m Qatar Vinyl Company (QVC) arranging mandate, narrowly pipping a lower priced ANZ/IBJ bid. A more favourable repayment profile decided the bidding. The deal has a 12 year tenor with a two year extension clause. Pricing will be around 115bp over Libor.

BRAZILIAN banks Unibanco and Banco ABN Amro moved fast to take advantage of slightly calmer markets in the latter part of the week to tap funds in lire and dollars. Unibanco issued a Lit100bn two year deal at 311bp over lira swaps on Wednesday led by Chase, and Banco ABN followed up on Thursday with a $50m two year Eurobond offering at 335bp over Treasuries.

Lead arrangers of the $2.6bn loan package for Bacardi -- Goldman Sachs, Barclays. Citibank, Bank of Nova Scotia, Den Danske, Deutsche Bank, JP Morgan, NationsBank and Santander -- have closed general syndication and signed the deal. The deal has been one of the most successful and impressive transactions of the year. In senior syndication a massive $5.75bn was raised, showing the depth of demand. The success is all the more impressive considering the pricing -- which ranges between 25bp and 45bp over Libor -- attracted criticism when it came out.