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ARGENTINE domestic bonds tightened as much as 48bp this week as momentum grew behind the Republic of Argentina's plan to raise new cash as well as swap local bonds and FRBs for two new domestic bonds.

POSITIVE sentiment toward emerging market debt product this week helped the Republic of Latvia to enjoy a highly successful debut in the public Eurobond markets. The Baltic sovereign's Eu150m five year offering proved a blow-out success with yield-hungry European institutional and retail investors, attracted by a new sovereign name.

A SOFTER Latin new issue market this week saw borrowers offer bonds at attractive prices to entice investors struggling to digest the heavy recent issuance. Pemex offered the biggest transaction, a $500m 28/put seven year 144A deal (led by Salomon Smith Barney) at 425bp -- the widest end of its 400bp to 425bp spread talk and at least 50bp over the sovereign curve.

THE REPUBLIC of Argentina left no doubts about the renewed vigour in the Latin new issue market in euros this week when it issued a blow-out Eu500m 10 year deal -- the longest dated and largest Latin euro offering this year. The transaction, led by CSFB and Deutsche Bank, was increased from an initial Eu350m, then to Eu400m at launch and finally to Eu500m at pricing, after attracting a swarm of largely institutional investors with its 9% coupon and 520bp launch spread. The deal traded up to 99.60/65 on the break, from a reoffer of 99.55, taking its spread to 513bp.

THE GERMAN government is to press ahead with Deutsche Telekom's Eu10.3bn ($10.95bn) capital increase, regardless of whether the German national operator pushes ahead with its jumbo

AFTER much hype and speculation, Wall Street's oldest investment bank, Goldman Sachs, went public this week with an IPO that proved hugely successful. Launched at $53 per share, the stock shot up as high as $77.125, to close at $70.375 on the first day.

GERMAN investors' preference for Neuer Markt stocks seems likely to encourage foreign companies to seek a listing on this second tier market for small to mid-cap high growth corporate groups. In the next few weeks, two Austrian companies -- Sanochemia and AT&S -- should float their stocks on a hugely successful market that has hosted more than 45 IPOs this year.

IMI AND WARBURG Dillon Read will shortly launch the sale of stock in Roman electricity utility Acea, with the deal likely to be snapped up by international investors in the sector. Their last taste of a similar stock involved the sale of shares in the Milanese utility, AEM -- one of the most successful privatisations of last year. A booming local stockmarket and a full primary calendar represent perfect conditions for the Italian new issue market. Several large deals are expected to materialise in the coming months and a successful float of Acea will encourage further issuance from the corporate sector.

THE FRENCH Trésor has launched the privatisation sale of stock in Aérospatiale Matra, the national defence group. The government hosted sales briefings last night (Thursday) to assess the initial response to a pre-marketing period that began last week. The deal, led by SB with ABN Amro Rothschild, Lazard Capital Markets and Merrill Lynch as joint lead managers, should generate strong interest from investors seeking exposure to a liquid stock in an undersold sector.

FOLLOWING the successful Eu144m sale of stock in Telinfo, international and local investors are gearing up to buy a variety of Belgium stocks. Primary activity in the Brussels market has been subdued in recent years but is picking up as more privately owned companies see the benefit of floating at current rich valuations. "This market is ripe to host a variety of mid-cap deals," says a local banker. "There are some exciting opportunities to buy primary equity from growth sectors and we expect investors to be supportive of the dealflow in the next few months."

EKSPORTFINANS, Norway's export credit agency, will next week launch a benchmark bond for at least $500m equivalent. The transaction could be denominated in dollars or euros and a decision regarding the currency and maturity is expected today (Friday). "The message from the investor meetings is that there is a preference for either a five year dollar transaction or a 10 year euro offering," Anders Bruun-Olsen, senior vice president responsible for funding at Eksportfinans told Euroweek. "We will decide closer to launch depending on market conditions and what gives us the best reception."

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