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KREDITANSTALT für Wiederaufbau priced its first ever global dollar bond yesterday (Thursday), a $2bn five year that marks another step in the agency's bid to strengthen its position outside Europe by playing on its status as German sovereign risk. But the agency faced an uphill struggle as dollar swap spreads, already volatile for several weeks, widened between launch on Wednesday and pricing on Thursday as US stockmarkets fell 2% intraday. Within an hour of pricing, the spread widened from 61.5bp over the 5.875% November 2004 UST to 64bp over.

KREDITANSTALT für Wiederaufbau priced its first ever global dollar bond yesterday (Thursday), a $2bn five year that marks another step in the agency's bid to strengthen its position outside Europe by playing on its status as German sovereign risk. But the agency faced an uphill struggle as dollar swap spreads, already volatile for several weeks, widened between launch on Wednesday and pricing on Thursday as US stockmarkets fell 2% intraday. Within an hour of pricing, the spread widened from 61.5bp over the 5.875% November 2004 UST to 64bp over.

ALTERNATIVE telecoms provider Level 3 Communications set new records in the international high yield market yesterday (Thursday) with a $2.2bn equivalent transaction which included the largest high yield offering in euros to date. The Eu800m of bonds, split into eight and 10 year tranches, boosted high yield syndicates' hopes that in 2000 the European high yield market will start to shed its dependence on the US. The B3/B rated combined dollar and euro offering was the fourth largest corporate high yield bond sale ever and Level 3 raised financing totalling more than $5bn through the equity, equity linked and debt capital markets.

Argentina Pricing has emerged for the $80m B-loan being arranged for Banco Hipotecario SA by IFC and Barclays Bank (Miami).

ALTERNATIVE telecoms provider Level 3 Communications set new records in the international high yield market yesterday (Thursday) with a $2.2bn equivalent transaction which included the largest high yield offering in euros to date. The Eu800m of bonds, split into eight and 10 year tranches, boosted high yield syndicates' hopes that in 2000 the European high yield market will start to shed its dependence on the US. The B3/B rated combined dollar and euro offering was the fourth largest corporate high yield bond sale ever and Level 3 raised financing totalling more than $5bn through the equity, equity linked and debt capital markets.

* Swedish Export Credit Rating: Aa2/AA+

Bahrain The $68m two year term loan for Aluminium Bahrain (Alba) is oversubscribed but no decision has yet been taken on an increase. Sumitomo is the arranger.

A STRING of new issues look set to revitalise Easdaq, as the pan-European exchange makes a renewed bid to gain the momentum which has eluded it since its launch four years ago. JP Morgan is sole bookrunner and lead manager for Easdaq-listed ActivCard's $200m capital increase and Nasdaq listing, which will launch next week.

The Nationwide Building Society this week launched a £300m issue of Permanent Interest Bearing Share receipts o become the largest single non-equity issuer of tier 1 capital in the sterling market. The transaction effectively doubles the nominal size of the outstanding PIBS sector. The deal is split into two tranches and unusually for PIBS issues, is callable at the option of the issuer. The two tranches comprise a £200m perpetual, non-call 15 year portion, priced at Gilts plus 305bp and £100m perpetual non-call 30 year element priced at Gilts plus 345bp. The coupons step up by 100bp if the calls are not exercised.

* Grant Metcalfe-Smith has joined the EBRD as director, client risk management, in the treasury department. He will advise on interest rate, forex and commodity risk, providing risk management techniques, and report to Axel van Nederveen, head of asset and liability management. He was a risk management consultant following a career in structured derivatives and debt capital markets at Sanwa International, Rabobank and Chase Manhattan.

Market report: Compiled by Glenn Blackley, RBC DS Global Markets, Australia. Tel: +61 2 9373 0431