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Rio Tinto, the world's largest mining corporation, has signed a $2 billion Euro-MTN programme. This is the first time that a mining company has entered the market since 1996. The facility, which was scheduled to be finalised in November, signed via Morgan Stanley Dean Witter on December 22, 1999. The issuer was last seen in the public Euromarket when it launched a $300 million fixed rate five-year note, via its Canadian subsidiary. The issuer was criticized at the time by some dealers for failing fully to sell its name. But Ian Ratnage, Rio Tinto's head of treasury, insists marketing is a priority. He says: "Our rating will be an important factor. We are the only double-A rated mining company." The borrower carries long-term ratings of Aa3 from Moody's and double-A- from Standard & Poor's. There are no plans for a roadshow but Ratnage, at Rio Tinto, says: "We are going to spend some time with our dealers educating them about Rio Tinto. We hope to activate the programme once we have done that." No public inaugural deal is expected and Ratnage says that dealers will have to fight to lead manage the first private deal. All types of notes will be considered. Ratnage says: "We are agnostic as to which currency we issue in as long as we can swap it back into dollars. We intend to be as opportunistic as possible to hit our aggressive targets." Ratnage refused to name any ideal pricing level or funding target but said that it was very unlikely that Rio Tinto would hit its $2 billion issuing ceiling. The dealers are ABN Amro, Deutsche Bank, Dresdner Bank, Goldman Sachs, Lehman Brothers, JP Morgan, Salomon Smith Barney and the arranger.

The Republic of Romania hopes to announce today (Friday) the lead managers for a five year euro denominated transaction, once the competitive bidding war reaches its climax. It will follow the B3/B-/B- Eu150m three year deal from the republic, lead managed last month by Deutsche Bank. The transaction represented the country's return to the international capital markets after a three year absence.

Crédit Agricole Indosuez Lazard will manage the sale of Compagnie de Saint-Gobain's Eu500-Eu600m stake in Essilor, the world's leading corrective lens manufacturer. The 32% stake will be sold in a two-part transaction, including the sale of around 22% of Essilor, worth Eu500-Eu600m. Essilor will purchase the remaining 10% of Saint-Gobain's stake at the market determined price.

The$150m debut for Sasol Financing will close oversubscribed. The five year deal sets a tenor benchmark for South African deals. Sasol is the first South African borrower to syndicate a facility with a five year tenor. The past year has seen 13 borrowers from the region come to market seeking financing for one to three years.

Iceland LB Kiel has closed the four year revolver for SPH Bank at $10.5m - short of the launch amount of $20m. The deal paid 35bp over Libor with an undisclosed front end fee. The arranger said the lack of bank lines for smaller Icelandic banks accounted for the shortfall.

Arrangers are closing the $180m pre-export financing for Russian oil company Sibneft today (Friday). Seventeen banks are supporting the deal. It is one of the largest deals to go to full syndication in the past two years both in terms of size and the number of banks in the lending group. The facility is also the biggest structured trade financing in Russia this year.

Snap-on, a US power tools maker, will increase the ceiling off its euro200 million ($173.97 million) Euro-CP programme to euro400 million on October 26.

Market report Compiled by Vusi Mhlanzi, RBC DS Global Markets, London.

* Berlin-Hannoversche Hypothekenbank AG Rating: AAA

Sumitomo Forestry NL, Sumitomo NZ and Sumitomo Investment have been dropped as issuers from Sumitomo Forestry's $200 million Euro-MTN shelf. Deutsche Bank and Norinchukin International have been added as dealers.

Sun Life Assurance Company of Canada (Sun Life) became the latest gic-backed borrower to join the market, when it signed a $2 billion Euro-MTN facility on February 25. Morgan Stanley Dean Witter has been awarded the arrangership, its third of the year. Sun Life will be jostling for market space with other gic issuers, such as Jackson National Life and Monumental Global Funding, both came to the market last year. And since many have double-A ratings or above, competition is fierce. Sun Life has financial strength ratings of Aa2 from Moody's, and AA+ from Standard & Poor's. With $250 billion-worth of assets under management, Sun Life ranks among the largest insurance companies in the world. It is in the process of demutualisation and therefore it will wait until after floatation on March 22, to begin issuing. Dealers are ABN Amro, Barclays Capital, Credit Suisse First Boston, Deutsche Bank, Merrill Lynch, Salomon Smith Barney, Warburg Dillon Read and the arranger.