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THE REPUBLIC of Lebanon's $400m 10 year Euro/144A offering -- its longest stand-alone issue in the international bond markets to date -- this week became a victim of the spread volatility which has dogged emerging market issuance as economic turmoil in south east Asia scales new heights. Launched on to the screens on Thursday morning in London at an indicated spread of 235bp-245bp over the 6.125% August 15, 2007 US Treasury, the B1/BB- rated issue was eventually priced in the afternoon by lead managers Credit Suisse First Boston and SBC Warburg Dillon Read at a spread of 250bp over on a 8.625% coupon on an issue/fixed re-offer price of 99.61.

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SBC WARBURG Dillon Read this week launched the sale of convertible bonds in Lukoil, Russia's largest oil company. The transaction is a landmark deal, offering investors $350m in six year high yield, premium exchangeable redeemable bonds with a rich conversion premium of 64% (giving a conversion price of $177.78 per GDR or $44.44 per ordinary share) and a tight semi-annual coupon of 1%. The financing was issued through a special purpose financing vehicle, LUKInter Finance BV, and has been rated by Standard & Poors at BB-. At these terms buyers can convert the bonds, known as HYPERbonds, into shares at any time during their life.

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* Banque Internationale à Luxembourg SA Rating: Aa3/AA-

THE HUNGARIAN government this week launched the privatisation sale of stock in its national telecoms operator, Matáv. The deal is lead managed by Credit Suisse First Boston, Merrill Lynch and Creditanstalt. Matáv will become the first central European company to be listed on the NYSE and will be the fourth European telecom operator to be offered to international investors in the last month after Portugal Telecom, France Telecom and Telecom Italia. Salesmen in London point to several benefits which Matáv offers to telecom investors, such as its high levels of potential growth and a market which has put in an incredible 120% performance in the past 12 months.

MAID PLC, the online business information company, is set to formally enter the market for a new $117.5m Chase Manhattan plc arranged loan at a bankers presentation in London on Wednesday. The facility, which is split between a $92.5m term loan and a $25m revolving credit, is to help finance the company's $420m acquisition of Knight Ridder Information Inc in the US.

MEXICO reaffirmed its role as the pioneer among emerging market issuers this week with its debut C$500m six year global bond -- the first such issue by any emerging market borrower. The offering, joint lead managed by Merrill Lynch and Scotia McLeod, was launched with a coupon of 7% and a fixed price re-offer of 99.404, giving it a spread of 175bp over the June 2003 Canadian government bond.

LATIN AMERICAN bond spreads widened between 30bp to 50bp yesterday as the emerging markets were hit by the Asian currency turmoil. Although there was a hefty amount of issuance in a variety of currencies from Latin American issuers this week, all new offerings were trading well below their highs on Thursday as hedge funds, dealers and small players began to lighten their positions in the market,

Kuwait Expect news soon of a major new financing for Kuwait Airways. Bidding is well underway.