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THE first project bond of the year from China is to be priced next Thursday, with infrastructure developer Cathay International Ltd hoping to raise $350m via a 10/non call five year issue led by JP Morgan. Although the structure has been deemed aggressive by some observers, bankers pointed out that compared to recent issues from the sector, Cathay has a more diversified pool of assets -- embracing water, power, tunnels, bridges and roads and also a series of projects with established track records and cashflows.

THE expected upsurge of issuance in Taiwan's domestic bond market gathered pace this week with two new supranational offerings and a sizeable offering from one of the republic's blue chip credits, China Steel. The European Investment Bank (EIB) led the week's activity with the pricing of its debut issue via Citicorp Taipei.

THE markets approach the end of the first quarter with record levels of issuance and expectations that the high volumes will continue, with Fannie Mae about to make its announcement of its next benchmark note and Freddie Mac expected in the first week of April with its first reference note. The dollar sector saw successful transactions from Merrill Lynch -- a £750m 10 year deal at 75bp over via Merrill -- and Bear Stearns with a self-led $500m five year global, the bank's first global bond and its first fixed rate bond outside its domestic market.

Bahrain Bahrain International Bank is in the market for a $75m facility. Bahrain International was last in the market in December 1997 with a $75m five year revolving credit arranged by ANZ, Emirates Bank International and Arab Banking Corporation. That loan took almost two months to sign after launch due to difficulties in the financial markets. Bahrain International will be hoping for similar pricing this time. However, some market observers have suggested that it will be lucky to achieve pricing under 87.5bp. The commitment fee will also be higher this time -- the 1997 loan had a fee of 25bp.

MORGAN Stanley Dean Witter this week sold the largest exchangeable bond from Asia excluding Japan for Singapore Telecom (SingTel), raising $1bn and fuelling hopes that the Asian markets are open for business again * provided the credit is right. The transaction also confirmed that, barring the special case of Thailand, convertibles are the instrument of choice in the effort to draw investors back to the region.

* Norway's Fokus Bank has today (Friday) signed a $1bn Euro-MTN market in a bid to increase its presence in the international capital markets. Arranged by Merrill Lynch the programme will be used by the bank to further diversify its funding away from its traditional sources. Its aim is to carry out the majority of its funding internationally.

MORGAN Stanley Dean Witter this week sold the largest exchangeable bond from Asia excluding Japan for Singapore Telecom (SingTel), raising $1bn and fuelling hopes that the Asian markets are open for business again * provided the credit is right.

* The Republic of Lebanon will next week launch a twin-pronged assault on the Euromarkets as part of its most ambitious international fundraising exercise to date. According to lead manager Paribas, overwhelming European and Middle Eastern demand for Lebanese risk has led to plans for a $300m five year offering in addition to a previously announced $500m three year issue.

* Lehman Brothers has completed one of the most successful French IPOs this year with the sale of stock in bio-tech group Transgene. The offering, which was around 15 times oversubscribed, results in a dual listing for the company on the Nouveau Marché and Nasdaq. Lehman and joint lead manager Credit Suisse First Boston were able to close the deal in the face of heavy oversubscription -- pricing the stock at $14.50, the top of the indicated price range. Some 1.314m GDRs were sold to investors with each receipt representing three shares. The joint leads were joined by Crédit Lyonnais and Lazard Capital Markets as co-managers.

Canada Bank of Montreal and Goldman Sachs Credit Partners LP have completed a $1.8bn facility for Canadian National Railway Co and Grand Trunk Co. The facility is split into a five year $600m revolver and a $480m term loan for Canadian National Railway Co, and a one year $320m term loan and a $400m five year revolver for Grand Trunk Co. Pricing for the loan is based on the company's debt ratings.

Edward Brown has quit as head of distribution in Chase Manhattan's global syndicated finance department in London to join Credit Suisse First Boston. He will be a director in CSFB's syndicated finance and asset distribution team in London where he will report to managing director Grant Johnson and work alongside Charles Bennett. Michael Berry and Christophe Cleve have been appointed global co-heads of leveraged finance within Deutsche Morgan Grenfell's structured finance division. Berry will be based in London, while Cleve will be based in Frankfurt. Both will report to Gavin Lickley, head of structured finance.

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