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Market report Compiled by Vusi Mhlanzi, RBC DS Global Markets, London Tel: +44 20 7881 5643

SPANISH biotechnology company Zeltia successfully placed what is thought to be the largest European pure biotech issue ever, with a Eu290m secondary offering. The deal was three times oversubscribed and priced at Eu60.5, at a 4% discount to the closing price on Friday June 30. Of the 4.156m shares issued, 13% went to Spanish retail and the rest were allocated to general and biotech funds from across Europe and the US.

Issuance is on a par with a record 1999, despite a slow start to the year. But, as Philip Moore discovers, more interesting are the changes in the type of issuers coming to the market In theory, the outlook for the issuance of European convertibles has never been better. On the one hand, supply of new issuance should be driven by continued M&A activity, corporate restructuring, fundraising from new economy companies and a more benign fiscal environment.

Abbey National is to securitise £2.2bn of its residential mortgages in a multicurrency bond issue, lead managed by Schroder Salomon Smith Barney, that will be by far the largest mortgage backed security ever issued in Europe.

Egypt The selldown of the $225m acquisition financing for Orascom Telecoms, jointly arranged by Chase Manhattan and Citibank, is progressing well.

Abbey National is to securitise £2.2bn of its residential mortgages in a multicurrency bond issue, lead managed by Schroder Salomon Smith Barney, that will be by far the largest mortgage backed security ever issued in Europe.

DEUTSCHE Bank and Goldman Sachs sold a Eu2bn exchangeable for Siemens into Infineon with aggressive terms this week. Despite a sharp drop in semiconductor share prices on Wednesday, the bond has remained above issue price. The issue closed 2.5 times covered, having priced at the top of the yield to maturity range of 1.5%-2%. "Investors said the bond floor was the lowest they had seen - at a theoretical level of between 81 and 83," said a banker.

Hong Kong A group comprising BA Asia, BOCI Capital, Citicorp International, Hang Seng Finance and HSBC Investment Bank Asia has launched a HK$5.1bn fundraising for Great Eagle Holdings through wholly owned special purpose company Renaissance City Development Co. The parent is providing a guarantee.

Europe * First Italian Auto Transaction SpA

Australia Arrangers National Australia Bank and Westpac have underwritten a A$772.5m transaction for SPI Australia Finance for the recent acquisition of GPU PowerNet from Austran Holdings Inc, which is owned by New Jersey based GPU Inc.

Market report: Compiled by Glenn Blackley, RBC DS Global Markets, Australia Tel: +61 2 9373 0431

How easy is it to uncover information about Goldman Sachs? Usually you have as much chance of hearing the low-down on Goldie as seeing a Scotsman unlock his sporran to buy the first round of drinks in a bar. Goldman does not encourage active public relations. Given half a chance the firm would prefer not to speak to the outside world at all. However, we were recently at a private dinner party in the suburbs where an ex-employee, with a fortune in the bank and not a care in the world, blew the whistle on some aspects of his old firm. We discussed Lisa Endlich's book, The Culture of Success, whether Goldie made any money in 1994, and what exactly happened to Jon Corzine.