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Hong Kong BA Asia has been mandated by Florens Container Inc to arrange the extension of the company's $120m two year letter of credit facility signed in May 1998. That deal was also arranged by BA Asia and paid an L/C fee of 100bp and a 25bp extension fee.

Europe * Owengate Keele Plc

* GE Capital Australia Funding Pty Ltd Guarantor: General Electric Capital Corp

Standard Chartered Bank and Bank of Tokyo-Mitsubishi are venturing into new waters with a $100m 364 day loan for Banamex. This is the first loan for a Latin borrower to be targeted solely at Asian and Middle Eastern banks.

Do we hear the sound of falling bodies from the battlements of Commerzbank in London? Is there already enough blood on the pavement to delight the Dracula Gourmet Club, which salivates over the prospect of slowly-cooked jugged hare and oozing boudin noir for breakfast? Did Regis 'Reggie' Fraisse, the reclusive Frenchman, who packed his Camembert sandwiches and walked away on New Year's Eve, leave the front gates open for the barbarians outside to come in and put every last man, woman and child to the sword?

Both the Fed and the ECB finally raised interest rates this week but while the 25bp European increase was less expected, the US dollar market was hit by other difficulties. Strong economic data last Friday persuaded any doubters that the FOMC meeting would result in a quarter point rate hike, but the swap spread widening that followed closed the market to all but borrowers such as Italy that had already committed themselves.

After several weeks of gentle erosion in credit spreads, volatility has returned with a vengeance. Ten year dollar swap spreads started last Friday at 71bp over 10 year cash; yesterday (Thursday) they were bid up to close to 100bp over Treasuries before settling at about 94bp. "It's like the autumn of 1998 again," said one dealer. More to the point, it resembled last August as a period of dramatic spread widening amid a relatively benign economic landscape. The stronger-than-expected GDP numbers last Friday put the cat among the pigeons, but the panic initiated by fears of evaporating Treasuries and a radically inverting curve proved more important this week. In the middle of all this, the Federal Reserve's decision to hike rates by an expected 25bp to take the Fed Funds rate to 5.75% underpinned the main event.

Stephen West has left his position as head of European capital market services at Merrill Lynch, having held the job for just four months. A Merrill Lynch spokesman described the parting as amicable. "Stephen decided to pursue other interests and he leaves the firm with our good wishes," was the official party line. Market talk suggests that chemistry between the two parties simply didn't exist.

* Ford Motor Credit Co Rating: A1/A+/A+

NOMURA has secured the lead management mandate for the Republic of Turkey's keenly awaited return to the Japanese bond markets. A ¥25bn three year fixed rate issue is planned, with launch set for late February. The prospects for a successful first yen offering by Turkey since May 1996 received a boost when Japanese Credit Rating (JCR) raised its rating for the country from BB+ to BB.

NOMURA has secured the lead management mandate for the Republic of Turkey's keenly awaited return to the Japanese bond markets. A ¥25bn three year fixed rate issue is planned, with launch set for late February. The prospects for a successful first yen offering by Turkey since May 1996 received a boost when Japanese Credit Rating (JCR) raised its rating for the country from BB+ to BB.

British Energy has mandated Deutsche Bank and HSBC to arrange a £550m financing. The facility will be split into a one year and a five year tranche, with the greater part expected to be at five years. The margin is said to be in the mid- to late 40s.