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RED CHIP China National Petroleum Corporation (CNPC) Hong Kong Ltd offered an end of year boost to market sentiment this week with a successful top up and placing under the lead management of ABN AMRO Rothschild. Raising HK$596m Sun World Ltd, a wholly owned subsidiary of CNPC Beijing, sold 260m shares and re-subscribed to an equal number of new shares at an issue price of HK$2.35. Representing an 11.3% discount to close and 10.71% discount over a 10 day average, the issue equalled about 5.57% of the company's existing issued share capital of 4.67bn shares.

BZW is close to a deal with Credit Suisse First Boston over the sale of its Asian operations, which are headquartered in Hong Kong. Company officials said it hoped that a final agreement would be signed and sealed before year end. Having expressed some interest in acquiring the whole of BZW's worldwide franchise, CSFB opted solely for the UK bank's European equities and corporate finance businesses in mid-November, stating that there was too much overlap in Asia where it had also developed a strong presence.

THE Japanese government announced its intention to alter the terms of its railway privatisation programme this week, in a move which further threatened confidence in the country's already fragile equity market. The country's transport minister, Takao Fuji, said he is planning to introduce legislation to force seven privatised rail companies to take on ¥500bn ($3.8bn) worth of pension liabilities incurred by the Japan National Railroad.

FUJI BANK plans to securitise loans in the international bond markets before the fiscal year closes at the end of March, a bank official confirmed this week. Fuji hopes to structure the transaction itself, but will employ an investment bank to distribute the bonds. Three leading American houses are in the running, one of which is Goldman Sachs.

India Arranger SocGen Asia has invited selected banks into the $50m fundraising for Maharashtra State Electricity Board. Fees are 35bp for lead managers with commitments of $5m to $7m and 21bp for managers taking $3m to $4m.

INVESTORS IN the Eurobonds of Brazil's Ceval Alimentos received an early Christmas gift this week when the company's new owners, Bunge y Born, offered a three to four point premium to buy back $178m worth of $200m outstanding Ceval bonds. As part of its acquisition of the struggling grain processing company, Bunge tendered for two Ceval deals: the $100m 10.625% 2004s led by Chase and the $100m 11.125% of 2004s led by Citibank. It received tenders for 89% of the bonds, at a price that implied a spread of 410bp to the 2001 calls in both bonds, about 100bp tighter than secondary market levels.

LEHMAN BROTHERS has successfully completed a $425m offering of 10 and 30 year debt for Israel Electric in the Yankee bond market. Despite the market being spooked by the failure last week of Korea Development Bank to issue a $2bn Yankee via JP Morgan, Lehman pushed on with the transaction. Braving the difficult market conditions Israel Electric's second Yankee offering raised considerably more than targeted.

* Inter-American Development Bank Rating: Aaa/AAA

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Argentina BankBoston Trust Co Ltd and Dresdner Bank Luxembourg have completed the $100m five year loan-style FRN for Transportadora de Gas del Sur SA (TGS).