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THE STEADY decline in dollar spreads during 1998 appeared to slow this week, with the five year sector in particular beginning to buckle under the weight of supply. The turning point of the softening came on Tuesday, ensuring mixed receptions for issues launched that day.

A STRING of small and medium cap companies from Germany are gearing up to issue new shares, spurred on by the rising domestic demand for equity. According to bankers, more of them are also electing to list their shares on Frankfurt's main market and the Neuer Markt. Merrill Lynch and West LB were mandated for one such deal this week when they were hired as bookrunners for the flotation of Kamps, one of the largest retail bakeries in Germany.

* Wolters Kluwer NV Amount: Dfl 500m

Croatia Inter Ina (Guernsey) Limited, the offshore subsidiary of Croatia's energy company, held a bank meeting yesterday (Thursday) for its Merrill Lynch arranged $100m 7-1/2 year term loan. The loan, which has an amortising element, is priced at 120bp over Libor -- an ambitious margin despite the fact that the borrower is registered in Guernsey.

Brazil * Banco BBA Creditanstalt

* Bank of Nova Scotia Rating: Aa3/AA-

THE EUROPEAN Investment Bank took advantage of the continuing demand for sterling assets and the lack of supply of Gilts at the long end of the curve by launching its largest and longest ever transaction in the sector. The £750m euro-fungible offering due December 2028 was increased twice by lead managers Barclays Capital and Goldman Sachs, and continued the EIB's strategy of launching benchmark issues in sterling as Gilt substitutes.

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* ABN Amro and Salomon Smith Barney have secured the mandate to lead manage the first Eurodollar deal by the National Bank of Hungary (NBH) since August 1994. The two banks emerged victorious from a shortlist of eight banks which comprised four European and four US bidders. The planned $300m five year issue for the Baa3/BBB- rated borrower will be roadshowed in Italy, Switzerland and the UK next week, with launch expected shortly thereafter. Given Hungary's limited fundraising needs, the NBH is fast gaining a reputation for launching opportunistic, tightly priced issues. The forthcoming transaction is expected to emerge at an aggressive-looking spread of 80bp over Treasuries.

GREECE took the markets by storm this week with the launch of a hugely successful Eu1.5bn issue which sets a new benchmark for the borrower in the international markets and the future European currency. Propelled by a new found belief in the Greek convergence story following the republic's decision to devalue its currency, enter the ERM and join Emu in 2001, the issue met massive investor demand from accounts across Europe and tightened in dramatically before lead managers saw good two way business in the deal.

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FOLLOWING the assignment of international credit ratings by Standard & Poor's and Moody's this week, the City of Florence plans to issue a Lit100bn-Lit150bn municipal bond. Florence, the capital city of the region of Tuscany, was rated Aa2 by Moody's and AA by S&P. Merrill Lynch acted as ratings adviser.