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* Fannie Mae Rating: Aaa/AAA

PACIFIC Construction priced a $75m convertible on Monday, marking one of the few Taiwanese issues this year not to hail from the electronics sector. Led by Bankers Trust, the deal came at the tight end of the coupon range in return for a more generous premium and yield to put.

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INTERNATIONAL debt issuance by Polish corporates looks set to take off in the coming months, with leading Polish airline LOT and construction firm Aral looking to tap the Eurobond market with debut issues. Polish telco Netia is due to tap the US high yield debt market next week with a maiden issue. LOT, the state owned carrier scheduled for partial privatisation in 1998, has invited bids for the ratings advisory and lead management role on a $100m issue. It will be the first international bond issue by an airline from central and eastern Europe. LOT is understood to have requested proposals for fixed and floating rate issuance, with a minimum tenor of three years up to maximum of 10.

LEAD managers Merrill Lynch, Goldman Sachs and BBV Latinvest Securities jointly opened the way for Spanish corporates to access preference share capital in the US and international markets this week with a $700m offering from oil and gas group Repsol. The company, which became a fully privatised company earlier this year, became the first of its country's corporates to raise this type of finance. So far the market has been dominated by banks and other financial institutions using preference shares to boost capital ratios.

AS foreshadowed in Euroweek several months ago, Rhône Poulenc has launched a Ffr7bn capital increase to fund the 100% acquisition of its US subsidiary, Rhône-Poulenc Rorer (RPR). Société Générale is global co-ordinator in the sale of units in a global offering, with each unit representing one share with one warrant attached.

INVESTORS on three continents flocked to buy Credit Suisse First Boston's $5bn securitisation of corporate loans on Wednesday. Some syndicate banks raised quibbles about the transaction, but most agreed that the issue was largely a success, reflecting the huge appetite for collateralised loan obligations (CLOs).

MERRILL Lynch placed the second French franc credit card securitisation for MBNA this week, despite difficult market conditions. MBNA European Structured Offerings No 3 comprised Ffr3bn of triple-A rated five year bullets paying 5.25%. Priced at 99.947, the notes yield 19bp over the interpolated BTAN and OAT curve.

* Discover launched its third credit card securitisation of the year on Wednesday, less than a week after its second. Discover 1997-3 Credit Card sold $650m of senior seven year floaters, increased by lead manager Morgan Stanley Dean Witter from $500m.

BANKBOSTON announced on Thursday that it was boosting its presence in Asia with two high profile hirings. Francisco De La Hoz is to become the bank's country manager for Singapore and regional client manager in corporate banking; and Loren Romano will take up a role as managing director and head of Asian syndicate. De La Hoz joins BankBoston after 18 years with Chase, where he was involved in the building of client relationships. At BankBoston he will continue the bank's shift from a predominantly product focus to a client based approach. Romano will be expected to help BankBoston widen its capital raising capability as the bank looks to underwrite and distribute loans and securities in Asia. He also joins the bank from Chase, where he has worked since 1981, most recently as head of fixed income sales and before that as an emerging market fixed income salesman.

UBS WON the mandate this week to lead a new benchmark offering by Taiwan's China Steel group. The combined impact of the large size of the issue and the group's poor track record with international investors has already begun to focus attention on the deal ahead of its prospective launch in November. However, Taiwan specialists commented that while previous issues from China Steel have not been well received, the main cause chiefly stemmed from the government's perceived attitude towards pricing, a problem that may not bedevil this offering.

THE unprecedented level of demand for the 2.6bn share flotation of China Telecom has resulted in mounting speculation that the indicative pricing for the deal will be revised upwards and books closed a day early. With an imminent announcement expected from joint global coordinators Goldman Sachs and China International Capital Corp (CICC), China specialists remain divided over the merits of an increase. While a number of international investors have complained the company is being pitched far above its fundamental value, others state that Red chip p/e multiples combined with excessive investor demand lend themselves to a greater premium.