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THE SPANISH government successfully sold its remaining holding of Argentaria stock this week, in an offering that demonstrated the continuing appetite for Spanish equity and for the country's financial sector. Priced at Pta10,790, the institutional offering was seven times oversubscribed; the retail tranche was 21 times oversubscribed at Pta10,457, or a discount of 3%.

ARGENTINA THIS week signalled the official end to the days of lira deals priced as much as 75bp inside dollar yield curves, when it launched its first of 14 lira deals in line with dollar spreads. Needing size and a longer maturity, Argentina launched a Lit750bn deal maturing in 2009 with a 10.375% upfront coupon stepping down to 8% in 2000. Chase and Paribas were the joint leads.

Australia Toronto-Dominion Bank Australia has postponed the A$85m term loan for Signature Security Group and Securitas Electronic Protection due to the parent company raising further capital from an additional equity offering. New Zealand Westpac Banking Corp is preparing an information memorandum for the NZ$115m project financing for Mokai geothermal power station. Westpac has underwritten the entire facility.

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

THE REPUBLIC of Argentina has revived plans to sell about $3bn worth of leftover holdings in privatised companies, including its 20.3% stake in YPF. After more than four years of waiting for appropriate market conditions, the republic is to sell long-held positions YPF and 15 other state companies, including its 5% stake in Aerolineas Argentinas, its 20% stake in Gas Natural Ban -- due for launch by leads Santander Investment next week -- holdings in other gas companies and the more recently announced privatisation of Banco Hipotecario Nacional, due in July.

Brazil Signing of the $100m L/C backup facility being arranged by Barclays Bank (Miami) for Banco BCN Barclays (Bahamas) Ltd was signed on February 6. This facility, which has a risk participation fee of 125bp, refinances the previous $100m facility signed on February 3 last year.

THE ITALIAN region of Lazio this week made its international markets debut with a dual tranche Euro/144a offering for $300m. The issue, documented under the region's recently signed global medium term note programme, was the first globally distributed issue by an Italian region.

THE ITALIAN region of Lazio this week made its international markets debut with a dual tranche Euro/144a offering for $300m. The issue, documented under the region's recently signed global medium term note programme, was the first globally distributed issue by an Italian region.

* Kredietbank SA Amount: Lfr2bn subordinated

* The launch prospects for the debut dollar Eurobond for Russian diamond producer Almazy Rossii-Sakha (Alrosa) via Salomon Smith Barney and SBC Warburg Dillon Read looked brighter this week, following the announcement that the Russian government had been granted a one year extension to its current $9.2bn three year extended fund facility from the IMF. The news provided a much needed boost to the prices of all Russian assets. Ba2/BB- rated Alrosa completed a series of public investor presentations in Europe and the US last week and has since conducted a number of one-on-one meetings with potential buyers.

Banks are waiting to hear the outcome of the bidding contest for the much prized arranging mandate for the financing of the Sweeney power project which has a total cost of $185m and is sponsored by CSW. Although the project has an offtake agreement for 50% of the project's power output, much of the remaining power will be sold into the pool thus creating a merchant style financing. Credit Suisse First Boston is among the bidders. Banks should hear from CSW within the next week.

* European Investment Bank Rating: Aaa/AAA