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  • Shinsei Bank, the relaunched Long-Term Credit Bank of Japan, has hired Robert Sheehy, head of international securitisation at Bear Stearns in Tokyo, and almost all Bear Stearns' Japanese securitisation staff. Daniel Shireman, head of Asian securitisation at Bear in Tokyo, will be moving with Sheehy, as well as Ichiro Masuda, Akira Nakayamada and Yasuhiro Honda. The Bear team's other principal member, Yoshinari Uchiyama, will remain at the US house.
  • Odebrecht Group, a leading Brazilian chemical, petrochemical, engineering and construction company, raised R$180m this week with a domestic securitisation of trade receivables arranged by Banco Santander. The deal marks a step forward for the Brazilian domestic ABS market and is the first structured deal to be rated by Moody's on its Brazilian national scale.
  • US based agricultural conglomerate Bunge International, the world's largest soybean exporter and one of the largest private companies, has established a $700m asset backed commercial paper conduit backed by working capital loans to its various operating subsidiaries. Chase Manhattan will be conduit administrator, collateral agent and liquidity agent.
  • Commonwealth Bank of Australia is set to launch its second global mortgage securitisation next week via Merrill Lynch. Series 2000-2G Medallion Trust will offer $1.1bn of triple-A rated global bonds, as well as a parallel domestic triple-A tranche worth A$400m and a domestic subordinated piece.
  • One of the complications in equity derivative modelling is how to treat dividends.
  • MALAYAN Banking (Maybank) has issued requests for proposals (RFPs) for an international senior and subordinated debt issue. The bank wants proposals to lead manage a combined subordinated and senior debt offering for up to $350m. The subordinated portion is a tier two sub debt deal for $200m, with a 10 year non-call five structure. The balance will be made up of senior funding, with a three to five year maturity.
  • MERRILL LYNCH issued its first Samurai bond in four years this week through a ¥75bn two and three year tranche bond. Rival Morgan Stanley Dean Witter is set to follow today (Friday). The deal consisted of a ¥10bn, two year tranche, which was placed to some market criticism, although the major ¥65bn three year tranche was well received, and was increased from ¥40bn.
  • PREMARKETING of the Mass Transit Railway Corporation (MTRC) IPO will begin next week and then follow the standard issue timetable for Hong Kong transactions. The government privatisation issue is likely to raise about HK10bn. Bankers in Hong Kong point out that the government wants a widespread retail distribution as well as solid institutional support. Retail investors took up 70% of the Tracker Fund disposal last year.
  • Hong Kong Chase Manhattan Bank has won the mandate to arrange a HK$3.3bn financing for the planned Walt Disney theme park in Hong Kong.
  • THE AUSTRALIAN debt pipeline this week showed signs of strong activity for the coming months as three corporates announced new issuance plans. Recently demutualised NRMA Insurance Group said it would establish its second debt issuance programme for A$1.5bn. Meanwhile energy company TXU Australia released details of a A$1.5bn transaction and GPU GasNet signed a debt issuance programme for A$750m.
  • A plethora of major issues could emerge from China's top corporates this quarter, led by China Petrochemical Corp through Morgan Stanley Dean Witter. China Petrochemical, also known as Sinopec, is the country's second largest oil company and will come to the market before China's largest oil producer CNOOC, which will probably emerge in the first quarter of 2001.
  • Australian mortgage lender Members' Equity returned to the domestic market this week with an A$346m MBS issue from its Superannuation Members' Home Loans programme. It was lead managed by Credit Suisse First Boston. SMHL Ltd Securitisation Fund No 9 is the issuer's ninth domestic MBS, and follows its international debut through CSFB in mid-June with a $705m Euro/144A deal.