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One of the winners of Spain's five new UMTS licenses, Retevisión Movil, is tapping the loan market for a performance guarantee facility. The deal's launch is imminent. The borrower is looking for a loan worth just over Eu1.9bn, and has enlisted five arrangers to underwrite the deal. They are Ahorro Corporacion Financiera, Barclays Bank (documentation), BSCH (domestic bookrunner and agent), Commerzbank (information memorandum) and SG (international bookrunner).

After years on the offensive, German mortgage banks are being forced on to the back foot. While issuers of obligations foncières in France are offering investors liquid alternatives, mortgage banking associations across Europe are preparing proposals that could neutralise the competitive advantages that the German Pfandbrief market has long enjoyed. Most immediately, mortgage banks face a threat from Luxembourg-based entities exploiting greater freedom in their collateral pools. Philip Moore investigates the pressures on German mortgage banks and how they are responding.

Not only did dollar swap spreads penetrate yet new highs this week, but the market traded in a very wide range. The top of the market was about 143bps over the 6.50% February 2010 Treasury, while yesterday (Thursday) it was testing new lows at around 127bps over the note. Mid-week, the mid-market at five year swaps was more than 100bp over the 5.875% November 2004 Treasury. Some New York traders suggested that this extreme volatility had left blood on the streets. But although it is inevitable that swings of this magnitude will leave some houses on the wrong side of the market, the scale of the losses is a matter of debate.

Against initial expectations, the record breaking jumbo for Pacific Century CyberWorks (PCCW) will not go to general syndication. After a highly successful syndication, the four co-ordinating arrangers have brought in 27 local and international banks, taking the total raised from the market to more than $22bn. With this level of oversubscription, a second round of syndication is not necessary, as banks have been cut back to below their intended final takes.

THE ITALIAN region of Abruzzo this week signed a Eu500m Euro-MTN programme and launched its inaugural Eu129m issue. Merrill Lynch and Cofiri SIM are programme co-arrangers and were joint lead managers for the issue. In the past, Italian regions have obtained funds from the Cassa dei Depositi e Prestiti (CDP), a department of the central government that provides loans for municipalities. But Italian regions are now tapping the capital markets because of the greater range of financial instruments and flexibility on offer.

The $100m one year term loan for African Export-Import Bank was signed this week with an oversubscription. The borrower chose to stay at the launch amount, scaling lenders back. The arrangers are DG Bank, KBC Bank, RZB, Standard Chartered, WestLB and WGZ Bank.

Hong Kong The HK dollar financing for Dairy Farm International Holdings will launch soon, according to arrangers ABN Amro, Chase Manhattan Asia and Standard Chartered.

Europe * The Global High Yield Bond Trust Ltd

Market report: Compiled by Glenn Blackley,

"Apres nous le déluge"! These memorable words from Madame de Pompadour, who was mistress to King Louis XV and an up-market 'Slapper' Alice of her day, might be apt for the situation at Dresdner Kleinwort Benson after the news that Kevin Krespi, Jan Pethick and Guillaume Bonpun have flown the coop. The destination of Kevin Krespi is meant to be a secret, but do we hear emerging markets and sales at Merrill Lynch where the always loyal Krespi would be following in the footsteps of his mentor 'TJ' Lim? Young Guillaume Bonpun is certainly bound for Merrill - didn't we say that the inestimable Paul Richards might be feeling slightly lonely after being deserted by Hope Pascucci and the entire Pascucci family, who decamped en masse to Edson Mitchell at Deutsche?

Banca Agricola Mantovana (BAM), a northern Italian retail and commercial bank, is to sign a Eu1.5bn Euro-MTN programme and has mandated BNP Paribas as arranger. An official at BAM said the deal would be signed in the next two weeks, probably on April 20. In the past BAM has relied on profits from its banking operations for short term funding requirements, and domestic bond issues for medium term funds. The BAM official said that the MTN programme would raise the bank's international profile.

Blue Circle, the UK based cement producer, is tapping the loan market to defend itself against French predator Lafarge, just a few weeks after Lafarge itself wrapped up a blow out deal in support of its attack. Blue Circle has called on Greenwich NatWest and WestLB to arrange and underwrite the debt.