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  • Brazil * Banco BBA Creditanstalt (Nassau)
  • Czech Republic Euroweek hears that an oil refinery is asking banks to submit bids for a syndicated loan facility. More details are expected in the next couple of weeks.
  • Fringe currencies continue to be a popular source of arbitrage-based funding. Nord-deutsche Landesbank issued a Z150m 14% five year EMTN this week with Chase as sole lead, and the proceeds were confirmed to have been swapped to floating euros. Zloty swap rates are extremely erratic, often trading in a range of 15bp or more in a day. "It is a very volatile market," said one London broker.
  • * Berlin-Hannoversche Hypothekenbank AG Rating: AAA
  • * ABB International Finance NV Keepwell agreement: from Asea Brown Boveri Ltd
  • Banca di Roma will launch its second CBO next week. Arranged by Donaldson, Lufkin and Jenrette and Italian investment bank Mittel Capital Markets, the transaction will be lead managed by Banca di Roma and DLJ (books). Caesar Finance 2000 will be backed by 49 corporate bonds, mostly from Italian issuers, with an average rating of triple-B. The three month Euribor based deal amortises on a sequential passthrough basis.
  • * NIB Capital Bank, the former De Nationale Investeringsbank, will price its largest mortgage securitisation today (Friday). The Eu800m deal, lead managed by BNP Paribas, Merrill Lynch and NIB Capital Markets, parcels Dutch mortgages originated by four subsidiaries of NIB and by Zwitserleven, the Dutch branch of Swiss Life. The loans will be serviced by independent servicer Stater BV.
  • THE UK Treasury, which oversees the private finance initiative (PFI), used the programme itself two weeks ago, as UBS Warburg placed £127.79m of bonds to finance the renovation of the ministry's headquarters in central London. The transaction was launched without much publicity as the Treasury was keen to control press coverage itself, but details of the deal have now emerged.
  • Greenwich NatWest last Friday launched a £65.95m index linked securitisation to finance the construction of a new hospital in Neath, South Wales. The borrower, Baglan Moor Healthcare Ltd, has a contract from Brow Morgannwg NHS Trust to build a new 270 bed hospital,the Neath/Port Talbot Local General Hospital. Baglan Moor will then provide all non-clinical services to the hospital until the expiry of the contract in 2029.
  • UBS priced its latest leveraged, synthetic CLO last Friday, transferring credit risk on $1.2bn of assets in its principal finance book. North Street Referenced Linked Notes 2000-1 Ltd's $184m of notes are believed to have sold well at spreads comparable with high yield CBOs.
  • Convertible bonds (CBs) can be awkward beasts. In this Learning Curve we will wrestle with a question that has been controversial, namely--what discount rate should be used in valuing CBs?