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TWO OF CHINA'S leading Red Chips were forced to fall back on their core investor base in Hong Kong this week to conclude IPOs. International accounts are all but absent from Asia at least until the beginning of next year, and both China National Aviation Corp (CNAC) and Tianjin Industrial have drawn heavily on local relationships to drive their issues to completion.

BANKERS ARE predicting a successful outcome for the NZ$132m IPO for New Zealand pay-TV operator SKY Network Television. Syndicate officials report that strong orders are coming in from both domestic investors and from the UK, and expect the company to produce a similarly positive response from its visit to the US this week, where it has held a number of one-on-one meetings with specialist media funds.

Zimbabwe Arrangers Citibank International and Deutsche Morgan Grenfell have closed the $25m revolving credit facility for National Merchant Bank of Zimbabwe Ltd.

BANCO AMBROSIANO Veneto scored a resounding triumph in the subordinated debt markets this week when strong investor demand led to its deal being increased by $100m to $500m. The deal created a new benchmark for upper tier two capital, priced by joint bookrunners Barclays Capital and UBS at a re-offered spread of 95bp over Libor.

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The Republic of Argentina will shortly launch a groundbreaking $300m five year variable rate note deal sole led by Merrill Lynch. The offering, due for pricing either today (Friday) or Monday, is Argentina's answer to the emerging market-wide dilemma of wanting to raise money now, but without having to lock in current high spreads for a long period of time.

China Arrangers Citicorp International, BA Asia, Bank of China (Shanghai), Bank of Communications (Shanghai), Chase Manhattan Asia, Deutsche Bank AG, DKB Asia, Industrial & Commercial Bank of China (Shanghai), ING Barings, Shanghai Pudong Development Bank, Société Générale and Standard Chartered Bank have closed the $821m project financing for Shanghai General Motors Corp Ltd.

Australia Arrangers Chase Manhattan Australia, Dresdner Australia and JP Morgan Securities Australia have extended the deadline for the A$1.925bn loan for Austran Holdings Ltd. A couple of banks are still seeking approval from their head offices.

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

BANCA Popolare di Verona, the most profitable of Italy's co-operative banks, will shortly sign a $1bn Euro-CP programme in a move marking its arrival as an issuer in the international capital markets. The multi-currency facility, arranged by SBC Warburg Dillon Read, will be used by the bank to issue dollar, Swiss franc and sterling CP. It is expected to sign the programme next week.

BANKERS report that the final round of primary syndication on the jumbo $8bn facility for BAT Industries is already a phenomenal success. The strong reception suggests that, in spite of the Asian turmoil, it is still a case of business as usual for top rated names in the loans market.

LEBANON'S BANQUE du Liban et d'Outre-Mer (BLOM) this week became only the second Middle Eastern credit to issue subordinated debt in the international bond markets when it launched a $75m eight year bullet transaction via SBC Warburg Dillon Read. With a 9% headline coupon, BLOM's debut Euromarket issue was priced to yield 300bp over Treasuries at the issue/fixed re-offer price of 99.517. This represented a 25bp-30bp pick-up over the first subordinated transaction from the region -- the $75m 10 year non-call five issue for Lebanon's Banque Audi launched in mid-October via Merrill Lynch, which this week was trading at 255bp/250bp over Treasuries to its five year call.