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MERRILL Lynch is defying investors' fears about the emerging markets as well as harsh conditions in hi-tech industries to bring a deal for a company with some exposure to both sectors. The two tranche straight equity and convertible transaction is for Global Telesystems (GTS), a telecoms group with operations in Europe including central Europe and Russia.

THE UNITED Mexican States will stay away from the international bond markets until its spreads tighten at least another 25bp to 35bp, its general director of public credit, Carlos Garcia Moreno, said in London yesterday. "We will definitely be looking at market opportunities in the next few months, but we are in one of the categories where if anything we will be looking to retire debt more than issuing debt," he said at the Euromoney global bond conference.

Bahrain Arranger Gulf International Bank has closed and signed a $250m seven year loan for United Arab Shipping Company. Arab Banking Corporation and National Bank of Kuwait joined GIB as underwriters.

* JP Morgan has won the mandate to arrange a Euro-MTN programme for the City of Rome. The programme, which will be denominated in euros, is the first to be established by an Italian municipal government. The size of the programme has yet to be decided, but it is likely to be around Lit500bn equivalent. The first issue to be launched off the programme, also denominated in euros, will come during the third quarter of this year. * SNS bank Nederland NV, the banking entity of Dutch all finance-institution SN Reaal Group NV, has launched a Eu2bn debt issuance programme. As a result of its growing activities in the Dutch retail market, together with the increased European scope of its traditional domestic investors, SNS has launched the programme to broaden its investor base. The total outstanding public debt of SNS Reaal Group and SNS bank amounts to over Dfl4.5bn. SNS bank Nederland has a A2 rating from Moody's.

* Lead manager Merrill Lynch has completed the roadshows for the $75m five year debut Eurobond for Polish steelmaker Huta Imienia Tadeusz Sendzimira Kakowie SA (HTS). Market conditions permitting, the floating rate issue will be launched next week via HTS's Dutch registered vehicle, Polish Steel BV. Price talk is 175bp-200bp over three month dollar Libor. Pricing will step up by 150bp if HTS is not privatised by March 1999 in accordance with certain ownership covenants which dictate that the either the Polish state or one of two Western steel consortia vying for control of the company hold a 51% stake in HTS. The proceeds of the transaction will be used to refinance short term debt and for capital expenditure purposes.

* The number of flotations by privately owned Italian companies is picking up steam, with SBC Warburg Dillon Read this week pricing its offering of shares in Beghelli, a manufacturer of consumer electronics safety devices. The issue has broken all records with the volume of subscriptions reaching $2.8bn for a company whose sales last year were just Lit172bn. The 17.5m share retail tranche was 27 times oversubscribed while the institutional tranche was 16.5 times oversubscribed. Only the flotations of Telecom Italia and the third sale of stock in Eni have attracted greater interest from Italian retail.

* Landesbank Schleswig-Holstein Girozentrale Rating: Aa1

United States Chase Securities Inc and Barclays Capital have arranged a $500m revolver for Joint Energy Development Investments II LP. Pricing for the three year loan is based on the company's total capital and asset coverage ratio. The Libor margin range is 65bp to 162.5bp. The Houston, Texas-based joint venture between Enron Corp and California Public Employees Retirement System will use the loan to finance its purchase of the preferred stock of Costilla Energy Inc.

LEAD managers CSFB and IMI have launched the sale of stock in Eni, the fourth government divestment in the Italian oil and gas group attempted in the last three years. The authorities will slim their current shareholding of around 51% of the company to 38% through the sale of 1bn common shares. After one week of bookbuilding the Italian state and its bankers have indicated the tranche sizes. It revealed that some 750m shares are to be targeted at local retail investors, 90m will go to Italian institutions, 65m to US institutions, 55m to UK buyers and 40m to accounts in the rest of the world. The deal also has a 97.5m greenshoe option.

ING Barings has hired John Percival in its loans syndication team, reporting to Michael Clarke, head of syndications for Europe, the Middle East and Africa. Percival joins from UBS where he worked most recently as a member of the bank's asset sales and trading team focusing on loan sales.

Guarantor: Philip Morris Companies Rating: A2/A

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