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Deutsche Post is offering its shares at a large discount to its closest comparable to try and attract interest in its Eu5.8bn-Eu7.4bn IPO and the tactic seems to be paying off. The deal, which offers shares at between Eu18 and Eu23, is thought to be on course to be over four times covered.

US dollar swap spreads gradually tightened again this week in markets characterised by improving credit conditions, but also a dearth of new issue business. The 10 year was trading at around 109bp over Treasuries midday yesterday (Thursday).

Hungary The market is waiting to see who will arrange the new financing for oil and gas company Mol. Bidding for the EIB guaranteed facility closed on Tuesday.

Uncertainty about the Dutch government's proposed changes to the tax treatment of securitisations played havoc in the market this week. The two most recently issued deals, SNS Bank's Hermes II and DBV Levensverzekeringsmaatschappij's Holland Homes closed on schedule, but SNS Bank had to abandon its planned sale of a subordinated tranche, fearing that the tax changes could leave the deal with a cash shortfall.

The low cost airline easyJet announced a price range for its £181m-£254m IPO this week, although analysts continue to question the firm's business model. easyJet is roadshowing the deal in the Netherlands today (Friday) and will visit London and the US next week. The base offering consists of 63m shares at 250p-350p, and the greenshoe is made up of 9.45m shares. All the shares offered are new. The total will represent 28.8% of the company.

Latin America * Corporación de Andina de Fomento

ENI has added CSFB as a dealer to its euro1 billion ($861.6 million) Euro-CP programme. Issuance off the programme has been very high this year. The programme was signed in 1999 via Goldman Sachs.

* Fortis Lux Finance SA Guarantor: Fortis Bank

* Banca Popolare di Bergamo - Credito Varesino SCRL Senior rating: A2/A

The Republic of Finland may repurchase more legacy currency Eurobonds, following the success of its latest buyback, which netted some Eu600m equivalent, nearly 62% of the total amount eligible. Eleven out of the 13 eligible dealers participated by executing 50 investor trades, ranging in volume from Eu450,000 equivalent to nearly Eu60m. (See accompanying table for details.) All Eurobonds repurchased will be cancelled.

While US dollar markets were quiet this week, there was hardly any more life in the euro denominated bond market. The All Souls holiday on Wednesday closed markets throughout Europe. But, Freddie Mac is preparing to launch the second leg of its EuReference Note programme this month. It is roadshowing in Europe. The new deal will be for Eu5bn, and will mature in either 2003 or 2005, depending on investor preference. Like its predecessor, the Eu5bn 10 year priced in early September, it will be swapped to dollars.