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INDICATIONS of improving strength in the domestic primary debt market were underlined by a Kangaroo issue from Jackson National Life Funding and a domestic reopening from Australian retailer Coles Myer. The aa3/AA rated Jackson National Funding, the financing division of US-based life insurance company Jackson National Life, issued a A$400m deal with a four year maturity which was increased from A$300m. Of this, A$175m was issued as a fixed rate tranche with a coupon of 7%, which was priced at 42bp over the semi-annual swap, or 90bp over the government bond.

ASIA Global Crossing has filed with the Securities & Exchange Commission ahead of its planned Nasdaq IPO. The company wants to sell 53m new shares as well as a 7.95m share greenshoe. The initial filing range is $14-$16. At $15, the issue would raise more than $900m, implying a capitalisation of more than $8bn. Microsoft and Softbank are two of the core shareholders. Goldman Sachs and Salomon Smith Barney are joint bookrunners. The deal is likely to be launched soon.

THE Japanese government will announce the winners of the more than $13bn NTT6 share issue on August 11. The deal is slated for launch in early October. The Ministry of Finance (MoF) this week sent out invitations to about 70 domestic and international securities firms, which must submit their applications by July 28. The government is selling 1m shares to cut its holding in NTT to 47% from 53%.

POHANG Iron and Steel (Posco) mandated its anticipated Samurai bond issue to Nikko Salomon Smith Barney and Nomura Securities this week. The Korean steel manufacturer should complete the pricing of the transaction by early to mid-August, according to sources familiar with the deal. "Posco is planning to raise ¥35bn through a three year deal to finance a Samurai bond that the company has maturing in October," said a spokesman at one of the lead arrangers.

QBE INSURANCE Group tapped the markets this week, in a long maturity subordinated issue that provides further proof of the growing diversity and complexity of the Australian corporate debt market. The company made its market debut through a euro and Australian dollar sub debt Eurobond, the first sub debt transaction with a 20 year maturity from an Australian non-governmental institution.

THE Nasdaq IPO of Digital United Holdings continues to struggle. Pricing of the float was due yesterday (Thursday) but has been deferred to Monday. Bankers working on the deal cite inclement market conditions for new issues from Asia, the need for extra time to meet more US fund managers and the release of some new projections. There is the distinct possibility that the issue could be reduced in size or price below the indicated range.

BRAZIL launched a $1bn seven year global exchange bond this week, taking advantage of tight spreads at the short end of its yield curve, along with its new-found status as the next big Latin credit upgrade play now that Mexican spreads have rallied so much. The deal, led by Goldman Sachs and Merrill Lynch, carried an 11.25% coupon, and was launched at a deep discount re-offer price of 94.568 to yield 12.43% or 610bp over Treasuries. Pricing compared with a 600bp-612.5bp spread talk.

Market report: Compiled by Frank Hracs TD Securities, Toronto

BRAZIL launched a $1bn seven year global exchange bond this week, taking advantage of tight spreads at the short end of its yield curve, along with its new-found status as the next big Latin credit upgrade play now that Mexican spreads have rallied so much. The deal, led by Goldman Sachs and Merrill Lynch, carried an 11.25% coupon, and was launched at a deep discount re-offer price of 94.568 to yield 12.43% or 610bp over Treasuries. Pricing compared with a 600bp-612.5bp spread talk.

Capital Home Loans, the UK mortgage lending subsidiary of Irish Life & Permanent, launched its second securitisation this week with a £300m deal secured largely on buy-to-let mortgages. Capital Home Loans was formed in 1989 by Crédit Foncier de France and Société Générale and taken over by Irish Permanent in 1996.