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THE CHINA Development Bank (CDB) opted to err on the side of caution in this week's pricing of its long awaited $500m 10 year global bond via Merrill Lynch and Salomon Smith Barney. Breaking a two year issuance hiatus by the Baa1/BBB+ rated credit, the transaction continued a recent pattern from Asia where strong secondary market trading has almost eclipsed the achievements of the primary market.

THE BULGARIAN capital Sofia this week became the country's first issuer to tap the Euromarkets since 1989 with the launch of a Eu50m three year issue. Lead managed by Paribas, the pioneering B (S&P) rated offering featured an eye-catching 9.75% coupon to give a yield of 9.95% and a spread of 700bp over the 4.5% May 2002 Bobl on an issue/fixed re-offer price of 99.50.

THE REPUBLIC of South Africa this week made a well received return to the dollar markets for the first time since June 1997 with the launch of a $500m 10 year SEC-registered global bond. Lead managed by Merrill Lynch and Morgan Stanley Dean Witter the Baa3/BB+/BB rated issue had a 9.125% coupon to yield 9.18% or a spread of 370bp over the W/I 10 year US Treasury, on an issue fixed re-offer price of 99.645.

AS FORESHADOWED in Euroweek, the Republic of Turkey has launched a third tap of its 9.5% March 15, 2004 transaction to take the total issue size up a landmark Eu1bn -- making it the largest emerging market issue in euros this year. Launched for Eu500m via Deutsche Bank and Paribas at the end of February, Turkey's debut euro transaction was first upped by Eu150m on April 22, by another Eu150m on April 28 and by Eu200m this week.

NOMURA has completed a Eu30m three year floating rate note for Eesti Ühispank (Union Bank of Estonia or UBE). The Baa3/BBB- (Moody's/Fitch IBCA) rated issue, puttable annually from the end of year one had a coupon set a 312.5bp over three month Euribor and an issue/fixed re-offer price of 99.75 to give a launch spread of 338bp over three month Euribor to the first put on May 13, 2000. This week's issue follows a Eu50m three year puttable FRN issued via Lehman Brothers at the end of February -- the first central and eastern European bank issue in euros and the first public Euromarket issue by a bank from the region since before the Russian financial crisis in August 1998.

BRAZIL'S BNDES battled against rumours this week that its controversial corporate debt swap deal was being pulled, continuing as planned with roadshows and the setting of additional spreads on the five credit baskets of bonds in the offering. BNDES's is asking holders of existing Brazilian corporate bonds to swap them for a more liquid, 10 year bond issued by special purpose vehicle Brazilian Liquidity Transaction Co. (BLT), whose assets will be the tendered corporate bonds and a BNDES guarantee on interest payments for a certain period.

THE REPUBLIC of Hungary capitalised on the bullish market conditions at the start of the week, with the Baa2/BBB/BBB rated sovereign launching a $250m increase to its seven year global bond via ABN Amro and Salomon Smith Barney. Launched for $500m in early April, the original transaction was the first SEC registered global offering from the region.

MEXICAN telecom start up Grupo Alestra issued the largest Latin American corporate bond since the Russian crisis this week in a $570m two tranche 144A offering. The deal, led by Morgan Stanley Dean Witter and NationsBanc Montgomery Securities, consisted of a $270m seven non-call life tranche launched at par to yield 12.125% or 668bp over Treasuries and a $300m 10 non-call life portion, also at par, to yield 12.625% with a spread of 708bp.

THE STATE of Qatar this week made a spectacular debut in the international bond markets, with the launch of the largest ever single tranche Eurobond from the Middle East. The Baa2/BBB rated sovereign issued a $1bn 10 year Euro/144A offering via Credit Suisse First Boston and JP Morgan, which placed the issue between them.

THE REPUBLIC of Argentina will today (Friday) announce the results of its jumbo local debt exchange programme, which is expected to see two new bond issues exceed their original minimum targets. The government has called on holders of a range of local bonds, as well as holders of Brady FRBs, to swap those instruments for two new bond offerings due in 2001 and 2004.

THE REPUBLIC of Argentina this week launched an Eu150m deal fungible with a series of other Eurobonds -- creating the first Eu1bn benchmark in the new sector from an emerging market issuer. The five year deal, led by Paribas, was launched on Wednesday at a fixed re-offer price of 99.05 or 465bp over Treasuries. It is fungible with the Eu250m 2004 bond launched by Paribas two weeks ago at 481bp, which is in turn fungible in 2000 with Argentina's DM1.5bn, Asch1bn and Lit1.125trn issues.

AS US investors cast their net wider, high tech stocks took a back seat this week, allowing other sectors to shine. Time Warner Telecom proved a hit with investors and made a successful debut on Nasdaq midweek, rising almost 50% on its first day.