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POHANG Iron & Steel (Posco), the Korean steel giant, returned to the international debt markets this week for the first time since mid-1997, with a ¥15bn three year Samurai issue lead managed by Nikko Salomon Smith Barney. Bankers agreed the deal's size and pricing ensured that most of the investor appetite was limited to the retail sector.

TELSTRA, Australia's dominant telecommunications company, has been trying to entice investors into a major euro denominated transaction - in a week when spreads on its existing bonds widened out dramatically. Telstra is believed to be talking directly to investors, with the help of a number of banks, in an attempt to raise up to Eu1bn. It is unclear if lead managers for any issue have been appointed.

PREMARKETING of the jumbo Vodafone Pacific share placement began this week, despite the volatile global market conditions and the recent adverse sentiment towards Telstra, Australia's largest telecommunications company (see page 1). Bankers report that institutions are enthusiastic about Vodafone Pacific and its management but will be especially sensitive to pricing given the global mark down of telecommunications stocks in recent weeks and the continued concerns over the direction of Nasdaq.

THE Indonesian Bank Restructuring Agency (IBRA) has completed the international institutional placement of 22.5% of Bank Central Asia, which is due to list on the Jakarta and Surabaya stock exchanges on May 31, following a domestic offering set to take place between May 19 and May 23. Bankers hope the backing for the first privatisation since the Asia crisis of 1997 indicates the support that the international investment community has for the political and financial reforms taking place in Indonesia. The issue was more than twice covered.

* Nomura has reinitiated a placement for OTC listed InterQ that will raise about ¥14.4bn. Half the shares are from the sale by founder and president, Masatoshi Kumagai, and half are new shares. The issue will be divided between 200,000 shares for the Japanese market and 440,000 shares for the international institutional offer. The discount is indicated at between 2% and 4% and final allotment and pricing will take place between May 22 and May 25 following an international bookbuild that began on May 11. Listing is set for June 14. The company provides internet infrastructure services.

* Eksportfinans A/S Rating: Aaa/AAA

SLOVAK state railways company ZSR provided this week's only emerging market action with a Eu125m seven year issue on Monday, which left bankers wondering whether any deal is worth doing in such dire market conditions. ZSR had to reduce the issue from a planned Eu200m and had to increase the spread by 15bp-25bp from the early pricing talk to execute the deal.

MERRILL Lynch, Schroder Salomon Smith Barney and Mediobanca will unleash Finmeccanica's Eu6bn equity and Eu760m convertible offering a week on Monday with pricing due to take place over the weekend of June 3. The deal began premarketing this week with broad interest - not least due to the scale of the deal. The issue will increase the freefloat of the company from 17% to 65%, should the greenshoe of 15% for both deals be exercised.

MERRILL Lynch, Schroder Salomon Smith Barney and Mediobanca will unleash Finmeccanica's Eu6bn equity and Eu760m convertible offering a week on Monday with pricing due to take place over the weekend of June 3. The deal began premarketing this week with broad interest - not least due to the scale of the deal. The issue will increase the freefloat of the company from 17% to 65%, should the greenshoe of 15% for both deals be exercised.

Halifax Group plc launched a £479m equivalent issue of upper tier 2 paper in euro and sterling tranches yesterday (Thursday), achieving competitive pricing in soft credit markets. The Aa3/A issue, led by Goldman Sachs, was sold in £300m fixed rate and Eu300m floating rate tranches. The sterling issue steps up after 15 years and was priced at 245bp over the December 2015 Gilt. The perpetual non-call 10 year euro tranche pays a coupon of Euribor plus 120bp, but was priced at 99.27 to give a margin of Euribor plus 130bp.

Halifax Group plc launched a £479m equivalent issue of upper tier 2 paper in euro and sterling tranches yesterday (Thursday), achieving competitive pricing in soft credit markets. The Aa3/A issue, led by Goldman Sachs, was sold in £300m fixed rate and Eu300m floating rate tranches. The sterling issue steps up after 15 years and was priced at 245bp over the December 2015 Gilt. The perpetual non-call 10 year euro tranche pays a coupon of Euribor plus 120bp, but was priced at 99.27 to give a margin of Euribor plus 130bp.

India BA Asia has received a verbal mandate to arrange a US dollar fundraising for Indian Oil Corp. BA is syndicating two other Indian transactions - a $180m one year transaction for Oil & Natural Gas Corp which pays 25bp all-in and a $75m five year deal for Industrial Credit & Investment Corp of India which pays 89bp all-in.