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THE JURONG Town Corporation (JTC) initiated the first stirrings of a semi-sovereign bond market in Singapore this week with the launch of a maiden S$300m public bond issue off its newly inaugurated S$4bn MTN programme. Together the programme and bond issue have set a number of firsts: the largest MTN programme in Singapore's history; the first bond issue by a Statutory Board to be listed on the Stock Exchange of Singapore and the first to be offered to the retail public -- who were allowed to purchase S$10m in paper with their Central Provident Fund (CPF) savings.

A STRONG Middle Eastern investor bid for Lebanese risk, lower funding costs as a result of last week's interest rate cut in the US and improved sentiment in the emerging markets have prompted Lebanon's Bank of Beirut and Banque Libanaise pour le Commerce to seek access to the Eurodollar market. Bank of Beirut already has a $50m 8.875% June 2000 transaction from May 1997, this week trading at a spread of 282bp over US Treasuries. The bank should supplement that issue with a $30m three year issue early next week.

* The National Bank of Hungary, which has already enjoyed considerable success in the Euro-Deutschmark sector this year with its DM1.25bn 2003 floating rate note transaction via DG Bank, is mulling a return to the fixed rate segment of the market. Baa2/BBB- rated NBH's last fixed rate issue in the German currency was launched over three years ago -- in the form of a DM250m 9% June 2001 offering led by Deutsche Bank in late June 1995.

STANDARD & Poor's this week assigned credit ratings to the Republic of Bulgaria and the country's capital, Sofia -- both of which are looking to make their debuts in the international bond markets next year. The sovereign was assigned a B rating with a positive outlook -- in line with the B2 rating Bulgaria had already secured from Moody's Investors Service and one notch below the B+ awarded by Fitch IBCA earlier this year.

THE RUSSIAN government's attempts to prevent the country's economy collapsing under the weight of a massive debt burden appeared to be making slow but sure progress this week. On Thursday the Russian authorities secured preliminary approval for a one-off rescheduling on $26bn of Soviet era debt owed to the London Club of commercial creditors, while the Russian finance ministry confirmed that it had transferred the $46.25m of funds necessary to meet the interest payment on its $1bn 9.25% November 2001 Eurobond that falls due today (Friday).

THE TURNAROUND in US investors' appetite for higher yielding corporate bonds continued this week when retailer Saks Inc launched a 12 year bond at a tighter spread than a 10 year deal it issued only weeks ago, and UK telco Cable & Wireless brought a blow-out $700m Yankee. Saks surprised the market with its new $600m two tranche issue, selling $250m of 7.5% 12 year bonds at 275bp over Treasuries and a $350m 7.25% portion at 250bp, led by Salomon Smith Barney and Merrill Lynch.

POLISH telco Telekommunikacja Polska Spolka Akcyna (TPSA) this week completed the European leg of the roadshows for its maiden international bond issue. Following visits to Milan, London and Frankfurt, the investor presentations for the Euro/144A transaction will move on to the US next week with launch scheduled for the end of the week, market conditions permitting.

LATIN AMERICAN borrowers' access to the international bond markets broadened further this week as a flurry of private sector Argentinian and Brazilian banks issued Eurobonds for the first time since July and the Province of Buenos Aires reopened a Swiss franc deal. Argentina's Banco Tornquist launched a $40m two year Eurobond, led by Banco Central Hispano, at a fixed re-offer price of 98.24 to yield 11.5%; Banco de Galicia launched a $100m two year deal at par to yield 10% at a 537bp spread over Treasuries; and Brazil's Banco ABN Amro increased an initial $50m two year deal to $75m and priced it at a fixed re-offer price of 99.90 to give it a 564bp spreads over Treasuries.

LEADING private sector Turkish financial institution Türkiye Garanti Bankasi has launched a bond buyback offer, with the bank tendering to repurchase up to $100m of its $350m 9.375% October 15, 2002 Euro/144A issue. That issue was launched on a fiduciary basis via Garanti's Cayman Island-registered SPV, Pera Financial Services Co, in early October 1997 -- before the Asian and Russian financial crises hit the emerging market debt sector.

Singapore has recently stepped up a gear in its drive to become Asia's premier international financial centre -- unveiling a raft of initiatives to stimulate the domestic capital markets, encourage greater participation from international borrowers and investors and establish the island state as the leading regional hub for fund management and investment banking. Some say the renewed drive has been sparked by the Asian crisis, which has drawn attention to Singapore's relative strength and stability and left many Asian economies with vast financing needs. Others say it is because the Singapore government misjudged the likely effect of Hong Kong's handover to China, and is having to battle harder than ever to compete with its long-standing rival to the north. Whatever the motive, there is no doubting the extent of Singapore's ambitions, the progress that has already been made and the speed with which the government is prepared to act to facilitate its aims. But what is less clear is whether a city famed for its authoritarian attitudes can ever develop the laisser-faire culture necessary for international capital markets to thrive -- or whether there is enough business available to justify international financial institutions stepping up their presence. Jackie Horne reports.

SCHRODERS and AB Asesores are to launch the sale of stock in Funespaña, the Spanish funeral company. The deal should raise Pta8.5bn ($50m) through the sale of shares to international and domestic institutional investors. Some 30% of Funespaña's equity capital will be sold through the sale of primary and secondary shares. Selling shareholders include the majority owner Dinamia, the domestic venture capital group.

ABN AMRO Rothschild has concluded the sale of stock in Magnus Holding, the systems management and industrial advisory group. The keen interest in the IPO from local and institutional investors sends encouraging signals to other Dutch corporates waiting to raise funds. The deal involved the sale of primary and secondary shares representing around 16% of the group's equity capital. Some 5,723,077 shares were placed at Dfl 17 after the lead manager indicated a price range of between Dfl 13 and Dfl 17.