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US FINANCE company Finova Corp joined the rush of US corporates into rallying bond markets this week with a $1.5bn global debut, the biggest offering of a raft of high grade issues totaling some $6bn. Led by Deutsche Banc Alex Brown and Salomon Smith Barney, the two tranche deal was increased from $750m and priced at the tight end of a revised price talk.

ABN AMRO is set to launch a Eu300m four year transaction for ProLogis, a US property company and warehousing company that wants to expand into Europe. The borrower is paying a margin on the bullet term loan that ratchets between 75bp and 95bp, depending of the rating of the guarantor. That guarantor is the US parent, ProLogis Trust. It currently has a triple-B rating, so the margin starts at 75bp. If it falls below investment grade the margin will increase to 95bp.

Jardine Fleming and Morgan Stanley Dean Witter increased Gas Authority of India's (Gail) GDR sale to $218m this week in response to strong demand for the shares. Following downward pressure on the underlying stock during the last week, the GDRs were priced at $9.67 - the equivalent of Rs70 a share from a close yesterday (Thursday) of Rs79. That is a discount of 12% to yesterday's close or a 9% discount to an four-day average.

The Italian treasury will launch its securitisation of delinquent social security contributions as three triple-A rated FRNs, without a government guarantee. Banks expect to receive a formal invitation to bid for the underwriting mandate today (Friday) or on Monday, with bids due in by next Friday.

Market commentary: Compiled by Jim Webber,

Kreditanstalt für Wiederaufbau tapped into growing demand for yen assets from index trackers this week with the launch of a ¥100bn five year global bond — the borrower’s first global outside Deutschmarks or euros.

Kreditanstalt für Wiederaufbau tapped into growing demand for yen assets from index trackers this week with the launch of a ¥100bn five year global bond — the borrower’s first global outside Deutschmarks or euros.

n Banamex this week became the first Mexican private commercial bank to issue plain vanilla bonds in the US market in five years, with a $150m two year eurobond/144A issue led by Chase. The deal carried a 9% coupon and was priced at 99.921 or 325bp over Treasuries. Banamex if the first Mexican bank to brave the straight bond markets since Mexico's 1994/1995 devaluation sparked a national banking crisis.

Brazil Citibank (syndication agent) and Banco Santander Central Hispano (administration agent) are in the market with a $100m loan for Citibank Brasil. The loan is for general corporate purposes and commitments are due this week. Signing is scheduled for November 24. The borrower was last in the market in September 1995 with a $50m one year revolving credit, arranged by Citibank.

THE REPUBLIC of Lithuania is looking to raise a club facility of between $20m and $50m over two years. The arranger Raiffeisen Zentralbank Österreich is quietly approaching a few banks to join, rather than attempting a full syndication. The facility will pay a margin of 250bp. The borrower would like to raise longer term funding, but that is not possible due to the political instability arising from the controversial sale of a stake in oil company Mazheikiu Nafta to the US energy company Williams - the prime minister recently resigned in protest against the sell-off - and the year end approaching.