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A STRONGER than expected secondary market performance by Asia's first two euro denominated offerings from Hong Kong conglomerate Hutchison Whampoa and the Republic of the Philippines has prompted the region's benchmark borrowers to consider the new market. Bankers said that although Korea Electric Power Corporation's (Kepco) prospective Eu300m to Eu500m debut has been pushed back to early June, it may swiftly be followed by deals from the People's Republic of China and the MTRC, as well as a potential offering from the Electricity Generating Authority of Thailand.

THE AUSTRALIAN domestic corporate bond market finally came of age this week with the launch of the first true public issue from an industrial triple-B credit. The A$150m transaction from local media group John Fairfax Holdings -- which was overwhelmingly successful and increased -- was hailed by market participants as a watershed in the market's development as it moves beyond the bank and high grade market towards a full credit spectrum of issuers.

THE TERRITORY of Guam is planning to launch its first public bond issue within the next month. Led by PaineWebber, a $350m transaction by the Guam Power Authority has been designed as a means of refinancing the group's existing bank debt and raising new funds. As an unincorporated territory of the US, the Micronesian island has tax exempt status under US law and as such bankers said that the group can source extremely cost effective funding in the US municipal bond market.

Australia Publishing and Broadcasting Limited raised A$500m through a share placement this week, arranged by JB Were. A total of 48.59m shares were sold at A$10.29 each -- a 6.28% discount to the company's closing price of A$10.98. The deal represents around 9.8% of the company's capital.

KOREA's Ministry of Finance and the Economy told domestic borrowers in a meeting this week that it will grant no further approvals for international bond issues over the near term. Underlining its determination to enforce a debt reduction programme on the republic, the move is also being viewed as a prop for the won which has risen steadily against the dollar over the past month as foreign institutional investment returns to the domestic stock market in force.

CONFIDENCE appeared to have returned to the Singapore economy this week, with strong demand reported for the $130m IPO for Allgreen Properties. Two share placements were also completed, while a slew of small domestic IPOs reinforced the feeling that confidence is steadily returning to the region. Bankers said the Allgreen IPO, led by DBS and Morgan Stanley Dean Witter, is already four times oversubscribed and was likely to be a great success.

SEVERAL billions dollars worth of Latin sovereign, semi sovereign and corporate debt will flood the international bond market in the coming weeks as issuers take advantage of the stampede of cross-over investors into an asset class they shunned earlier this year. Spurred on by Chile's and Brazil's blow-out deals this week, Costa Rica will price a $300m 10 year bond led by Credit Suisse First Boston, with a rumoured 240bp to 260bp spread talk, to yield at least 7.52%.

CORPORACION Andina de Fomento pounced on growing European institutional investor interest in Latin credits this week with an Eu300m five year debut. The blow-out deal, led by Merrill Lynch and Deutsche Bank, was increased from Eu200m. It was more than two times oversubscribed and priced at 175bp over the 2004 BTAN.

THE REPUBLIC of Chile confirmed the improved outlook for Latin credits this week when its debut $500m 10 year global bond issue enjoyed a blow-out reception. Chile's deal was so in demand -- it attracted $4bn in orders -- that lead managers Chase and Merrill Lynch were able to tighten the unofficial price talk from the low 200bp region over Treasuries to 175bp to 180bp over Treasuries.

THE REPUBLIC of South Africa will today (Friday) make its long-awaited debut in the euro denominated bond markets with the launch of a Eu500m seven year offering. The Baa3/BB+ rated sovereign mandated Credit Suisse First Boston and JP Morgan to bring the transaction in 1998, and the two banks completed a European roadshow last June.

THE ESTONIAN capital Tallinn has become the first central and eastern European municipality to tap the euro denominated bond markets, with the launch of a Eu17.5m (DM35m equivalent) five year floating rate note last Friday (April 16). Lead managed by Dresdner Kleinwort Benson, the Baa1 rated transaction featured an issue/fixed re-offer price of par and a coupon set at six month Euribor plus 180bp -- equivalent to a yield of 4.4% at launch.

LEAD MANAGER Morgan Stanley Dean Witter has set the price range for shares in Spanish construction group Ferrovial at Eu20.75 to Eu22.95, giving the company a conservative valuation against comparable groups in its sector. The books on the $1bn flotation are due to close today (Friday), with strong demand indicating a top-of-the-range issue price. The success of Ferrovial's float is an important stepping stone in rebuilding confidence among Spanish corporates in the new issue market after last year's events.