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THE JUMBO $850m equity financing from Asia Pulp and Paper (APP) of Indonesia remains on course for successful completion with lead managers Merrill Lynch and Morgan Stanley Dean Witter preparing to price the deal on Tuesday. Despite the inhospitable market which has rendered virtually every other transaction from Asia untenable, bankers and analysts expect the twin ADR and exchangeable offering to fare well.

RED CHIP China Merchants Holdings International broke the new issuance hiatus from the China/Hong Kong sector with a surprise $535m placement to fund its capex plans this week. Led by Peregrine, which said that the offering sold out within an hour, the group issued 229.5m shares to its parent and 123.5m to institutional investors at an issue price of HK$11.90, representing an 11.5% discount to Wednesday's close.

THE LIKELIHOOD of the IMF being called in to assist the Republic of Korea loomed larger by the day this week as investors turned their attention away from problems in Thailand and Indonesia towards the more dangerous prospect of a meltdown in Korea's fiscal position. Country specialists said that speculation concerning a bail-out of up to $100bn have been met with consternation in Seoul, where government officials have even started to threaten jailing rumour-mongers for destroying what little confidence is left in Korea's ability to service its enormous short term debt.

ABN AMRO kicked off its roadshow for palm oil plantation Astra Agro Lestari this week, drawing mixed reactions from investors on a wide range of issues such as the heated environment in Indonesian politics, Asia's sickly equity, debt and currency markets, continuing fires in Sumatra and drought caused by the El Niño weather system which is cutting palm oil yields. Astra Agro's first presentation was held on Wednesday in Singapore, as president Suharto's family sparred with the government about the closure of several banks in which it is a stakeholder, casting further doubt on proposed IMF reforms.

* US monoline insurer Financial Security Assurance is to set up a vehicle which will fund itself through a Euro-MTN programme, arranged by Merrill Lynch. The vehicle will be guaranteed by FSA, and will fund opportunistically through small issues in any currency, up to an initial limit of $1bn.

South Africa The well supported $100m five year term loan being organised for the Industrial Development Corporation of South Africa by CSFB and Société Générale SA was signed last Friday in London.

THE JUMBO $3bn facility being sought by Gazprom through joint arrangers Crédit Lyonnais and Dresdner Bank Luxembourg SA looks set to capture the market's attention over the next few weeks. Since the facility, which follows a similarly structured loan signed earlier this year, was first announced in the summer, the market has been measuring up the potential level of support available to the Russian gas giant from international lenders.

THE REPUBLIC of Argentina is looking at the possibility of returning to the bond markets this year -- despite having ruled out such a move last week -- but in currencies other than US dollars. Although the republic has no intention of launching any benchmark dollar deals at current spreads, bankers said the finance ministry was still open to the idea of one-off European currency deals as a way of raising a cushion of funds for debt amortising in the first quarter of 1998.

China State Development Bank of China signed its $220m financing coordinated by HSBC Investment Bank Asia and SocGen Asia on October 28 in Beijing.

National Australia Bank has arranged a A$200m CP programme for Itochu Australia. Dealers include National Australia Bank, Bankers Trust Australia and Westpac Banking Corporation. The A$820m term loan for Brisbane Airport Corp Ltd was signed on October 8.

Terms: $150m - revolving credit

* European Investment Bank