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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

SIGNS of a possible dimming of investor interest in Latin new issues emerged last night (Thursday) when Bachoco, the Mexican chicken processor, priced its equity offering at the lowest end of its price talk. The deal, led by JP Morgan, was priced at $17 per share, compared with a $17 to $19 indicated range. A total of 7.5m ADSs (with each ADS representing one B share and one L Share) were offered in the US, internationally and domestically.

THE LATIN markets are bracing themselves for the chance of another billion dollar plus global bond from a Latin sovereign -- this time from the Republic of Brazil, strongly rumoured to be planning an announcement of either a 10 year or a 20 year bond issue at the IMF meeting. Bankers said yesterday that the republic's central bank called for bids on either 10 year or 20 year global bonds around a month ago, with the intention of making a splash at the IMF, either with a blowout deal executed just prior to the fund's meeting, or with the announcement of a mandate.

* Bank of Nova Scotia Rating: Aa3/AA-

JP MORGAN and Merrill Lynch are strongly tipped as likely joint winners of the ratings advisory and lead management mandate for the planned Eurobond issue from the Republic of Bulgaria. The two US investment banks are believed to have beaten off competition from Goldman Sachs, ING Barings, SBC Warburg and UBS. Officials from all six banks were in Sofia this week for discussions with the Bulgarian finance ministry. An official confirmation of the mandate is expected by the end of the month.

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THE FLOTATION of China Telecom looks set to break all Asian equity capital market records as the company and its advisers prepare to begin pre-marketing the share offering in Asia next week.The Hong Kong-listed IPO, one of the most eagerly awaited new equity issues from the Asia-Pacific region yet, will be China's largest international share offering and a bellwether of investor sentiment towards the country. Despite the current turbulence in Asian financial markets, Chinese officials hope the deal will focus global attention on the country's remarkable recent economic development. Led by joint bookrunners Goldman Sachs and China International Capital Corp (CICC), the 2.2bn share flotation has been shrouded in secrecy following threats by the Hong Kong Stock Exchange (HKSE) to dismiss syndicate members caught disseminating unauthorised information.

DEBUT Euromarket issues for two of Russia's leading banks this week proved that the bid for Russian assets remains as strong as ever with both transactions emerging for larger than expected amounts. First to hit the screens was a $200m two year FRN for trade finance bank Vneshtorgbank (VTB).

* European Investment Bank Rating: Aaa/AAA