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THE ASIAN Development Bank successfully launched its largest ever bond issue this week, but had to reduce the deal to $2bn and widen the spread to avert disaster as investors once again lost confidence in Asia.

THE ASIAN Development Bank successfully launched its largest ever bond issue this week, but had to reduce the deal to $2bn and widen the spread to avert disaster as investors once again lost confidence in Asia.

Since its inception, the Euromarket's leading issuers have searched for ways to gain access some of the world's most powerful investors -- namely funds which only buy government bonds. Until recently, the Euromarket was unable to provide sufficient liquidity to attract these investors. In 1998, issuers may have found the answer -- superliquid bonds. These global bonds are bigger than anything the international market has seen before. Many bankers believe they are here to stay. But is biggest always best? Are investors becoming overburdened with supply? Are the bonds truly global in nature? Or is much of the current vogue for superliquid bonds just arbitrage masquerading as benchmark issuance? Clive Horwood reports.

South Africa American Express Bank, Bayerische Vereinsbank, Deutsche Bank, Fuji Bank and Kredietbank are to close syndication of the $150m three year term loan for Investec Overseas Finance BVI today (Friday). Appetite has been strong, with senior lead managers offered takes of $7.5m or more for fees of 20bp flat, lead managers offered between $5m and $7.4m for 15bp flat and managers offered between $2.5m and $4.9m for fees of 10bp flat.

Australia Union Bank of Switzerland has been mandated to arrange a A$43m project financing for the Savage River Iron Ore Project through Australian Bulk Minerals. The facility is split between a A$25m term loan, a A$15.5m L/C facility and a A$2.5m general working capital facility.

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BARCLAYS has won the coveted mandate to arrange the debt facilities backing CVC and Cinven's Dfl 3.4bn purchase of KNP BT's packaging division Kappa Packaging. The financing package will involve a high yield bond issue and a syndicated loan, although the sizes of each are unknown.

GOLDMAN Sachs (books) and Morgan Stanley Dean Witter have been mandated by BCE, the Canadian telecoms group, as global co-ordinators for the sale of its 14.25% stake in Cable & Wireless Communications (CWC), the UK group. Investment banks have been circling BCE for some time in anticipation of the deal. The vendor had considered many options, including a bought deal, an exchangeable bond or an international public offering of the shares.

THE LATIN new issue market was littered with pulled deals this week as another wave of bad news out of Asian caused emerging market spreads to balloon. Brazilian development bank BNDES postponed its $750m 10 year deal led by Chase; YPF delayed its planned 10 year Eu250m debut with Paribas and Chase; JP Morgan slowed down its timetable for Argentina's Province of Mendoza and underwriters everywhere were telling issuers to hang back until markets improve.

INDIA'S first serious visit to the international loans market since the southeast Asian crisis has been hit by fall-out from this week's nuclear tests in the country. ANZ Investment Bank, mandated to arrange a $100m syndicated loan for India's Power Finance Corporation (PFC), completes roadshows for the deal today (Friday) with a bank presentation in London, after visiting Mumbai, Bahrain and Singapore over the last week. General syndication is to be launched next week.

THE SUPPLY of stock from Greece is set to pick up in the wake of the market rally sparked by the devaluation of the drachma two months ago. Although several equity sales have been in the pipeline for some time, supply has been restricted by the high level of volatility. Now it looks as if international investors will be able to get their hands on liquid volumes of government-owned and corporate equity as bankers prepare to launch the sale of stock in Stet Hellas, National Bank of Greece, Hellenic Petroleum and Ionian Bank.

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