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Despite raising over $3bn in the international capital markets in the last four years, the African Development Bank (AfDB) remains one of the least understood supranational borrowers.

On the surface, all is sweetness and light. Publicly, treasurers enthuse about bank coverage of supranationals. "They have been very helpful in identifying new opportunities," says René Karsenti, director general of finance at the European Investment Bank (EIB).

Today, approaching 10% of all public supranational issues are in emerging currencies. In 10 years' time, it could be as much as 50%, as frequent issuers seek new markets in which to find deals that match their aggressive funding targets.

This has been an exciting year for supranational borrowers. Total issuance has been higher than ever before, with $47.4bn raised during the first nine months of the year - compared to $46bn over the same period in 1996.

According to one banker who knows the European Bank of Reconstruction and Development well (EBRD), the EBRD's treasury department made an estimated profit of $30m last year. The bank is well-known for being one of the smartest borrowers around, but clever capital raising cannot generate that amount of income. The key lies in the way in which the EBRD invests its surplus cash.

Structured notes have been one of the few areas of the capital markets where the needs and desires of supranational issuers, investors and bankers have met in happy unison in recent months.

Ask five bankers which issuer will become the benchmark borrower in the European single currency market after 1999 and you will get five different answers.

Cavalier. Swash-buckling. Even gung-ho. Words that crop up regularly when you ask bankers to describe the World Bank treasury department. Two years ago, such descriptions would have sounded absurd. Professional, obsessive? The answer would have been yes. But never cavalier. Over the last year, such phrases have become common currency when describing the World Bank's funding arm. What is going on?

* Dai-Ichi Kangyo Bank International launched ¥8.1bn of five year notes on Monday, in a novel Euromarket financing for a new Cayman Islands-registered company which intends to invest indirectly in the Chicago commodity futures markets. DKB executed a similar transaction at the end of June for Endeavor Bond Company, whose parent is also planning to invest in the Chicago futures exchanges, but the bank said that otherwise the deal is a first for the Euromarkets.

THAILAND passed one crucial test with investors during the IMF/World Bank meeting in Hong Kong this week by underlining its intention to adhere to the IMF's strictures and announcing a wide-ranging financial restructuring plan to be unveiled on October 15. Thai officials told Euroweek that the government had been made fully aware that it needed to maintain confidence in the country by being open about its plans to restructure the economy.

IT PROVED to be another difficult week in the mainstream Euromarkets, as the impasse created by widening swap spreads, still high levels of inventory and a general feeling of torpor among market professionals led to another quiet week for the usually busy month of September. But total volumes for September are likely to fall only a little short of the equivalent figures last year with the majority of the business at the margins. Secondary paper is still being offered wide of the market, and investors continue for the most part to shy away from primary issues.

ROADSHOWS will begin in Hong Kong on Monday for the $3bn plus flotation of China Telecom, following this week's release of further details on the sale. The issue, the largest share offering from China, has already begun to draw a strong response, prompting concerns that it may overwhelm Hong Kong's banking system. With 22.5% of the company's share capital to be offered pre-greenshoe, the group will divest a 9.9% stake to a dozen leading conglomerates including China Everbright and China International Trust & Investment Corporation (Citic), which hold stakes in its main domestic competitor Unicom.