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THE FORTHCOMING flotation of Gulf Indonesia Ltd will be the first to encompass an Indonesian depositary receipt (IDR), marking a new stage of development for Indonesia's equity markets. Following a recent lifting of the 49% foreign share ownership ceiling, Indonesian stockmarket regulator Bapepam has given Gulf Indonesia -- a subsidiary of Gulf Canada -- the go-ahead to become the first foreign company with an overseas headquarters to list in Jakarta. Its domestic depositary receipt programme should be in place within six months of the company's New York listing later this month.

ROADSHOWS will begin next Wednesday (September 24) for a first straight international equity offering for Taiwan Semiconductor Manufacturing Company (TSMC). The roughly $350m ADR issue represents a second attempt by Dutch conglomerate Philips to sell its stake in the group via the ADR market, having seen plans for a $500m NYSE-listed offering fall apart in poor market conditions late last spring.

THE REHABILITATION of the Islamic Republic of Pakistan in the eyes of many bond investors looks set to take a major step forward, following the announcement of plans for a new fixed rate dollar offering. The prospective $300m 144A deal marks the sovereign's second debt issue of the year, following a highly successful ANZ-led FRN in May which was tripled in size on final pricing.

PLANS to kick start Thailand's privatisation programme and raise much needed funds to ease the kingdom's financial crisis are being revived by the prospect of a government sell-down in Thai International Airways. Local bankers commented that a $250m to $300m divestment is in the final stages of receiving cabinet approval, with the company hoping to file an offering with the Stock Exchange of Thailand (SET) by November.

STANDARD & Poor's downgraded a number of Thai banks this week in a further blow to the financial sector's already stricken credit outlook. The senior debt of Bangkok Bank and IFCT was downgraded from the sovereign A- level to BBB+, Bank of Ayudhya from BBB to BBB- and Phatra Thanakit from BBB- to BB+.

UBS LAUNCHED a near $500m international offer for Nichiei on Wednesday in what is likely to be the largest international stock offering from Japan this year. Nichiei, the second largest finance provider in Japan, has a p/e ratio of 30 times March 1997 earnings. The 144a transaction consists of 4m new shares, a 500,000 greenshoe and a 500,000 sell-off by current shareholders.

EQUITY ISSUERS from Korea have faced a second testing week, with investor resistance to two telecoms-related transactions from Dacom and SK Telecom increasing the uncertainty as to the correct pricing levels for new issues. The fate of a $200m convertible from fixed line operator Dacom remains unclear. Lead managers Dresdner Kleinwort Benson and Dongwon Securities will still not clarify whether the issue it to be completed or postponed.

Ghana Syndication of the finely priced $275m trade finance facility being organised for Cocobod by co-ordinating arranger Citibank International plc, plus arrangers Standard Chartered Bank and the Agricultural Development Bank of Ghana, has been a blow-out success.

Corporates The Virgin Group, which is restructuring its various retailing businesses into the Virgin Entertainment Group by buying out joint venture partners, is to seek a £150m medium term loan to fund the purchases and provide working capital.

Citicorp Securities Inc has arranged a $1.25bn refinancing for Fox Kids Worldwide Inc. The loan is split into a seven year $602m reducing revolver, a $298m seven year reducing revolver and a nine year $350m term loan. Pricing is based on the company's leverage ratio. The Prime margin range for the revolvers is Prime flat to 125bp, the Libor margin range is 50bp to 225bp and the commitment fee range is 20bp to 50bp. The Prime margin range for the term loan is Prime flat to 175bp and the Libor margin range is 100bp to 275bp.

DUTCH MORTGAGE bank Westland/Utrecht Hypotheekbank has signed a $3bn Euro-MTN programme in a bid to promote its credit in the international markets and diversify its sources of funding. Arranged by ING Barings and Merrill Lynch, the programme will be used by the bank as a core funding vehicle alongside its guilder Euro-MTN programme launched last year, which has notched up outstandings of over Dfl 3bn.

Market report Compiled by Gerard Perrignon, Hambros Bank Ltd, London. Tel: +44 171-865 1759