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The European Central Bank took the market by surprise yesterday (Thursday) when it upped rates by 25bp. Evidently, it decided a dual pronged defence of the ailing euro was in order. However, the rate change had little positive impact on the currency. It briefly rallied before falling back below Eu0.87/US$. Traders are now debating the possibility of further ECB intervention.

Brazil * Federative Republic of Brazil

Italian assets look set to take centre stage over the coming weeks as the loan market gears up to finance first the bid guarantees and then the licence acquisition costs of the country's UMTS auctions. At the same time, Italy's strongest corporate name, Enel SpA, is making its debut in the Euroloan markets as a private entity. Enel has mandated ABN Amro (joint bookrunner), Barclays Capital (joint bookrunner) and Mediobanca (joint bookrunner, documentation and facility agent) to arrange a Eu10bn revolving credit. The 364 day deal pays a margin of 27.5bp over Libor and a commitment fee of 10bp. A utilisation fee of 7.5bp is payable if more than 50% of the facility is drawn.

Italian assets look set to take centre stage over the coming weeks as the loan market gears up to finance first the bid guarantees and then the licence acquisition costs of the country's UMTS auctions. At the same time, Italy's strongest corporate name, Enel SpA, is making its debut in the Euroloan markets as a private entity. Enel has mandated ABN Amro (joint bookrunner), Barclays Capital (joint bookrunner) and Mediobanca (joint bookrunner, documentation and facility agent) to arrange a Eu10bn revolving credit. The 364 day deal pays a margin of 27.5bp over Libor and a commitment fee of 10bp. A utilisation fee of 7.5bp is payable if more than 50% of the facility is drawn.

One of Germany's largest conglomerates has signed a euro2 billion ($1.75 billion) multi-currency CP programme and began issuing this week. Eon was formed when Veba and Viag merged earlier this year. The new facility replaces Viag's existing Euro-CP facility. Dresdner Bank is the arranger. Veba also has a euro2 billion Euro-MTN programme, but it is rumoured that this will be replaced by a Euro-MTN facility under the Eon name. Viag's euro500 million Euro-CP was one of only three arranged by Dresdner Bank in 1999. It was cancelled in June this year, at the time of the merger. Eon is focused on the energy and specialty chemicals businesses. Its electric utility subsidiaries include PreussenElektra and Bayernwerk, which together form Germany's biggest power company. Another subsidiary, Veba Oel, controls Aral, Germany's biggest gas station chain. The dealers off the Euro-CP facility are the arranger, ABN Amro, Bayerische Landesbank, Commerzbank, Deutsche Bank, DG Bank, JP Morgan, Morgan Stanley Dean Witter and Westdeutsche Landesbank.

Austria Erste Bank raised Eu282m from the sale of new shares this week in what a banker involved in the deal described as a "struggle".

* ABN Amro Bank NV Rating: Aa2/AA/AA+

* AIG SunAmerica Institutional Funding II Rating: Aaa/AAA

JP Morgan has been added as a dealer to Fujitsu's $500 million Euro-MTN programme.

Genossenschaftliche Zentralbank (GZ) issued a Z275m ($60.5m) zero coupon five year zloty Eurobond on Wednesday, at an issue price of 51.26 and a reoffer price of 50.26, via lead manager Deutsche Bank. The zero coupon reflects a division in the market between institutional and retail demand, thanks to short term currency concerns.

HypoVereinsbank suffered again from declining faith in the Neuer Markt this week as the bank was forced to pull the Eu19m-Eu24m IPO of web-contained management specialist HexMac. The deal was irreparably damaged by a fall of over 3% on the Nemax all-share performance index on the final day of bookbuilding, but had also been impeded by a disappointing grey market price.