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AHEAD OF a growing pipeline of China related bond issues later this month, the Kumagai Gumi group animated a moribund Asian bank market this week with a $100m FRN. Launched under the name of Kumagai Gumi (Hong Kong) Capital Ltd, the issue was led by Commerz (East Asia) as coordinating arranger, alongside Hypobank, Peregrine Fixed Income, Sanwa International and Sumitomo. With a three year maturity, the issue was priced at par to yield 87.5bp over six month Libor.

THE TOKYO Stock Exchange saw one of its largest listings in several years completed smoothly on Wednesday. The privatisation of Central Japan Railway Co, known as JR Tokai, opened moderately above its offer price. Shares in the railway company, which operates the Tokaido bullet train linking Tokyo and Osaka, ended their first day of trading at ¥385,000, slightly below market expectations of around ¥400,000, but up 7.2% from the offer price of ¥359,000.

DESPITE having remained relatively immune to the wider Asian currency crisis, the Republic of India saw the likelihood of a ratings upgrade recede into the distance this week as Standard & Poor's revised its credit outlook from positive to stable. The agency said it expected little, if any, near-term progress in efforts to strengthen India's public finances.

TWO BENCHMARK equity transactions from Taiwan Semi-Conductor Manufacturing Company (TSMC) and First International Computers (FIC) were priced this week, having drawn a combined total of over $4bn in orders. Despite a two month correction, which has seen the Taipei weighted index hit a recent low of 8,179, the electronics sector remains one of the few key market segments in Asia where any primary market interest has been evident since the onset of the currency crisis. Bankers said the success of an increased $595m ADR issue for the world's largest foundry manufacturer TSMC was particularly striking, benefiting both from an upturn in the foundry cycle, a devastating fire at its nearest competitor UMC and the interest of US high-tech funds which have previously had little or no access to the domestic stock.

THE ALMOST certain postponement of the $1.25bn privatisation of Korea Telecom has done little to bolster primary market activity from Korea, with a fourth new deal in as many weeks postponing pricing in order to drum up extra orders. A $100m GDR for Samsung Electro-Mechanics had been scheduled to price yesterday (Thursday), but has been left open until next week by lead manager Deutsche Morgan Grenfell. Indicative pricing has also been revised downwards.

Corporates Euroweek hears early reports that P&O is quietly looking to tap the market for a new $120m or so facility. Details of the financing, which is being arranged by HSBC Investment Bank, are still in the early stages of emerging. The 12 year parent-guaranteed financing is being used to fund containers.

NationsBank has completed a $530m revolver for Tech Data Corp. Pricing is based on the company's EBIT to interest ratio and its senior debt to capital ratio. The CD margin range is 50bp to 67.5bp, the Libor margin range is 37.5bp to 55bp and the commitment fee range is 12.5bp to 17.5bp. Co-agents for the loan are Barnett Bank, Bayerische Vereinsbank, Credit Lyonnais, Deutsche Bank, First National Bank of Chicago, Royal Bank of Canada, Bank of Nova Scotia and CIBC. Participating lenders include First Union National Bank, Banque Nationale de Paris, SunTrust Bank, Natexis Banque, Dai-Ichi Kangyo Bank, Dresdner Bank, Mellon Bank, PNC Bank, Sakura Bank, SouthTrust Bank and Sumitomo Bank.

* Morgan Stanley completed two successful IPOs this week, for American Italian Pasta Company, one of the largest pasta producers in the US, and the electronics company Stoneridge. The shares were priced Wednesday for American Italian at $18, a dollar above the pricing range of $15-17, raising a total of $142m. The amount of shares offered was also increased from 5.9m to 7.9m shares to satisfy demand for the stock. Demand was reported equally strong from both international and US investors, with the success of the issue attributed to the relative lack of high-quality good food names in the US stock market. Shares were trading well yesterday, opening at $21.25 and closing at $22. Co-lead managers for the issue were BT Alex Brown, Goldman Sachs and George K Baum.

* Bank Hapoalim NV Guarantor: Bank Hapoalim BM

* Westpac Banking Corp Rating: Aa3/AA-

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THE ASIAN Development Bank was forced to pay more than initially anticipated this week when widening 10 year spreads hit its debut DM1.5bn Eurocurrency benchmark transaction. Price talk during roadshows for the deal had focused on a spread of 10bp to 12bp over Bunds but, in response to general spread widening of 3bp to 4bp, the issuer agreed to pay 14bp over to ensure its strategic bond enjoyed a successful launch on Wednesday.