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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.

DRESDNER Kleinwort Benson and Paribas were awarded the mandate this week for the Asian Development Bank's first benchmark borrowing in a European currency. A roadshow for the issue will take place at the beginning of next week, and a transaction could emerge any time after its conclusion, market conditions permitting.

THE Inter-American Development Bank (IADB) this week completed a triumvirate of supranational deals in the Hong Kong dollar market, with its first since the Territory's handover to China at the end of June. The HK$1bn HSBC-led deal follows a similar transaction for the European Investment Bank last week and a smaller deal for the World Bank.

SOCGEN Asia launched $100m of two year FRNs on Monday as part of the transformation of property company Hongkong China Ltd into a financial services vehicle for Lippo Ltd and its new red chip ally, China Resources. Hongkong China, which is majority owned by Lippo, will cease to originate property development business under a reorganisation plan approved at an extraordinary general meeting on September 2. Some of the company's real estate interests may be sold off.

EAST Japan Railway's (JR East) second share issue is moving forward, but will not emerge until after JR Tokai has completed its domestic listing on October 8. Nikko Securities and Morgan Stanley Dean Witter have been appointed joint global co-ordinators by the JNR Settlement Corporation, a quasi-private organisation established by the government to handle the privatisation of the national railway system and dispose of its massive debts.

THE EXPORT-Import Bank of Korea (Kexim) made its second foray of the year into the Deutschmark sector on Wednesday with a DM500m ($280m) three year FRN. Bankers concluded that while the deal was a success, the all-in spread of 62bp over Libor showed how far Korean spreads have widened this year. Led by ABN AMRO Hoare Govett and Merrill Lynch, the AA-/A1 rated issue was priced at 50bp over three month Libor on an issue/re-offer price of 99.65 and fees of 5bp.

INDICATIVE terms for a $75m convertible by Pacific Construction have been announced ahead of the deal's scheduled launch next week. Taiwanese commentators said that terms on the premium redemption deal balance the company's optimism over its future share price with investors' desire for high bond floors and defensive characteristics.

INDONESIA'S PT Pindo Deli Pulp and Paper sucessfully launched a $750m Yankee bond, re-opening the high yield sector for Asian credits and underlining investors' search for attractive spreads. Originally touted as $400m in size, the multi-tranche offering set a number of firsts, not least in being the largest and longest deal to date from the Indonesia's corporate sector.

UNION Bank of Estonia this week launched a two-pronged assault on the Euromarkets with landmark issues in the Deutschmark and dollar sectors. On Tuesday the bank issued its first subordinated debt issue, a DM30m seven year non-call two offering via Nomura which was the first rated deal out of Estonia. Last week, IBCA had assigned the bank a BB+ subordinated debt rating.

Corporates The finely priced £531.3m refinancing being organised for Barking Power Ltd by sole mandated arranger and underwriter Deutsche Morgan Grenfell looks set to confound its many critics.

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* Council of Europe Social Development Fund Rating: Aa1/AAA