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ASIAN bond spreads continued to tighten this week but increased liquidity stemming from the continuing appreciation of Asian currencies and sharper pricing failed to draw new issuers to the market. Bankers reported an increase in appetite for credit across a broad spectrum and in all timezones but were cautious about predicting renewed issuance or enthusiasm for primary sales any time before Christmas. "Investors are currently looking at shorter dated paper and we could be nearing the time when quality issuers with existing MTN programmes could tap them," said one banker.

CHINESE sanitary products manufacturer Hengan this week received a setback when the Stock Exchange of Hong Kong failed to approve the launch of a HK$700m ($90m) IPO. Sources close to the deal declined to speculate when approval may now be granted.

ING BARINGS and Salomon Smith Barney have been appointed joint global coordinators for the sale of 5% of Korea Electric Power Corporation, in a surprise for the many bankers who believed that the US bank was out of the running due to its role on Posco and a mandate for a government bond earlier in the year. Two weeks ago Euroweek revealed a seven bank short-list including ABN Amro, Credit Suisse First Boston, Goldman Sachs, HSBC Investment Bank, ING Barings, Lehman Brothers, and one other, believed to be Salomon Smith Barney.

THE BOOK closes on the Container Corporation of India (Concor) domestic offer today (Friday) with the deal seemingly set for success. If expectations are realised, the deal of around $53m will provide a model for future transactions as well as a much needed boost for the Indian privatisation process.

* China International Trust and Investment Corp (Citic) is to issue Rmb700m ($85m) of three year domestic bonds next week. The bonds, carrying a coupon of 6.5%, are to be launched on the Shenzhen or Shanghai exchanges and so will not test international investor sentiment for China's ITICs. Proceeds finance the construction of a highway in Sichuan province. * Caltex Australia's A$500m CP and MTN programme will be arranged and lead managed by Commonwealth Bank of Australia. Dealers for CP issuance will include ANZ, BNP and NBA while the MTN programme dealers will include Deutsche Bank, Warburg Dillon Read and Westpac.

ABN Amro Alex Burtt has left his post of equity capital markets syndicate head at ABN Amro in Hong Kong.

THE PHILIPPINE National Bank (PNB) may reappoint ING Barings as adviser for its forthcoming recapitalisation and strategic stake sale today (Friday), although both Lehman Brothers and Salomon Brothers also have a strong chance of winning a role and a joint mandate could yet be awarded, according to local analysts. ING Barings relinquished the mandate when a shareholders meeting last May voted out PNB's management. Although ING was under no obligation to withdraw from the deal it was generally agreed that a fresh selection process would be to the advantage of all.

DOMESTIC political turmoil failed to dent international investor demand for Turkish risk this week as the Republic of Turkey returned to the Euromarkets after an absence of more than six months. The B1/B rated sovereign successfully launched a larger than expected DM600m three year offering via Commerzbank and Deutsche Bank on Tuesday -- the day before opposition MPs in Turkey called for the resignation of the country's minority coalition government over an alleged corruption scandal.

LATIN issuers are lining up for a last minute run at the international bond markets before year end, with Uruguay, Venezuela, Argentina and a number of corporates and banks all considering deal launches in the weeks ahead. Lead manager Chase should bring Uruguay to market as early as today (Friday), or Monday, with a $150m five year deal in the mid to high 300bp range above Treasuries.

TOYOTA Motor Credit Corporation launched its first ever global bond this week in an attempt to reset its trading level for the institutional investor base. The launch comes barely a month after its spreads had ballooned in the secondary market -- and some bankers felt that the issuer, one of the top corporate credits in the international bond market, had sold itself short. TMCC spreads have been badly hit by the correction since July. Although its operations are purely based in the US, the auto finance company's Japanese parentage had caused its spreads to widen to levels more akin to single-A issuers such as GMAC and Ford than Aa1/AAA rated TMCC.

* The World Bank approved two loans for Argentina this week, totalling $3bn, as part of a multi-lateral agency effort to give the country the financial cushion to avoid any future contagion from Asian-style crises. The loans include a so-called Special Structural Adjustment Loan (SSAL) of $2.5bn and a special repurchase facility support loan of $505m. After Colombia, Argentina is the second country to receive an SSAL -- a new type of financing put together by the World Bank in reaction to the current global financial turmoil.

THE POLISH government this week completed its largest and most important privatisation with the sale of stock in Telekomunikacja Polska (TPSA), the national telecom operator. The deal has been fraught with difficulties, first surfacing at the height of the emerging market crisis which two months ago threatened the world financial order.