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HONG KONG slipped back into crisis mode this week after local stocks plunged on fears over red chip debt repayment and local interest rate hikes. A hefty HK$2.34bn ($302.75m) placement for property company New World Development did little to inspire confidence, but Heilongjiang Agriculture's IPO will soldier on regardless, said bankers. New World Development sold 117m shares at HK$20.15 in a Hong Kong-style block trade and top-up deal on Monday, with settlement on Wednesday. Crédit Lyonnais Securities Asia (CLSA) and Goldman Sachs were joint underwriters, although CLSA fully underwrote the entire deal. Tai Fook Securities acted as a sub-underwriter to CLSA.

PLANS BY the Republic of the Philippines to launch a debut euro offering were complicated this week by growing confusion over lead management roles and collapsing emerging market spreads triggered by problems in Brazil. Following the overwhelming success of its surprise $1bn split 10 and 20 year offering last week, the Philippines had hoped to capitalise on positive sentiment by bringing a roughly $500m equivalent euro deal to market in late February/early March.

THE LIKELIHOOD of a first bond issue emerging from Greater China this month faded further into the distance this week as spread volatility from Latin America cast a new shadow over Asia. Bankers reported that although Hong Kong/China spreads were the least affected of any Asian credit by events in Brazil, timing remains far from ideal for the kind of large benchmark bonds envisaged by the Mass Transit Railway Corporation (MTRC) and State Development Bank of China (SDB).

JARDINE Fleming completed a block trade of 100m shares, or around 6% of Indofood Sukses Makmur yesterday (Thursday). Raising $60m and involving government-owned shares, the deal is the first Indonesian privatisation since Cemex's successful bid for a stake in cement company Semen Gresik, also through Jardine Fleming. Bahana Securities and Danareksa acted as selling brokers for the government; buyers' names will be revealed later in the month as Indonesia enjoys a public holiday for much of next week.

THE INNOVATIVE exchange offer for Bangkok Bank, scheduled to close on January 25, looks to be moving successfully to completion. Structured to aid the bank improve tier one capital ratios, the offer comprises three subordinated US targeted deals that will be exchanged into two new lines with slightly extended maturities. Under offer are three outstanding subordinated debt issues comprising a $300m 7.25% 2005 issue originally led by JP Morgan at 112bp over Treasuries; a $150m 8.5% 2016 issue also led by JP Morgan at 155bp over Treasuries; and a $300m 8.3/8 2027 issue led by Morgan Stanley Dean Witter at 155bp over Treasuries.

SAMSUNG Electronics this week launched the first public securitisation by a Korean corporate, as Crédit Lyonnais inaugurated a $100m revolving programme to finance the company's export receivables. The French bank's US asset backed commercial paper conduit Atlantic Asset Securitization Corp issued some $7m of A-1/P-1 rated one month CP. The notes are backed by payments due from Samsung's overseas customers for finished goods such as televisions, monitors and microwave ovens. The assets have an average maturity of 90 days.

INDIA's National Thermal Power Corp (NTPC) has moved into the final selection process for a $100m US targeted transaction it hopes to launch by March. Bankers bidding for the deal, however, said that complications with the structure of the transaction, combined with signs that bidding is shifting into the historically slow moving realm of the Indian public sector mandating process, could throw the timetable into jeopardy.

FOR THE SECOND year running, Westpac has kicked off its funding programme for the year with a transaction in Japan's Uridashi market. An A$125m three year fixed rate deal launched this week marks the third time that the AA-/Aa3 rated credit has tapped its ¥100bn shelf over the past year, each time with Nomura as lead manager.

POLAND's Autostrada Wielkopolska is set to give a boost to the fledgling project bond financing market in central and eastern Europe, with the planned launch of a $400m 15 year zero coupon offering. The Polish toll motorway builder last week mandated Deutsche Bank and Merrill Lynch as joint bookrunners of the offering, which it hopes to launch within the next three months. The proceeds of the issue, for which Autostrada is hoping to secure a guarantee from the Polish government, will be used to finance half the costs of the construction of a 150km toll motorway between Nowy Tomysl and Konin in central Poland. A further 30% will be financed through state guaranteed loans, and the 20% balance from Autostrada's own funds.

THE DEVALUATION of the Brazilian real this week snuffed out the euphoria surrounding the successful launch of the euro and threatened at one point to derail the funding plans of central and eastern European sovereign borrowers. But with few reports of selling of outstanding transactions from the region during the week, issuance plans remain on track -- for the time being at least.

* Kazakhstan Electricity Grid Operating Co (Kegoc) is reviving plans for an international bond debut. The state owned utility had hoped to enter the Euromarkets with a $200m five to seven year standalone transaction last year, mandated to ABN Amro and Merrill Lynch. But since the deterioration in Kazakhstan's economic outlook in the wake of Russia's August financial meltdown, Kegoc is now believed to be considering tapping the markets with a credit enhanced issue.

PLANS FOR the Republic of Turkey to seek a much-needed international bond financing were pulled two ways this week. While Brazil's problems soured sentiment for all weaker credits, the B1/B rated sovereign's chances looked brighter after veteran leftist leader Bulent Ecevit received approval to form a new government. Ecevit's appointment as prime minister ends six weeks of political uncertainty and will provide a degree of much needed stability in the run-up to general elections in April.