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  • The City of Gothenburg is poised to award the mandate early next week for a Eu300m seven year revolving credit. Bankers say a four bank shortlist has been compiled from a much larger number of initial bidders, which included SEB, Svenska Handelsbanken, Swedbank, Den Danske, Unibank and other banks both inside and outside Scandinavia. The mandate should be awarded to one or possibly two bidders.
  • Market commentary: Compiled by Jim Webber,
  • Sole arranger and underwriter Citibank has received a positive early response to the long anticipated Eu800m facility for Heineken España, which is using the credit to finance its acquisitions of the Cruzcampo and El Aguila beer brands from Diageo. According to the arranger, traditional relationship banks as well as Spanish lenders and sector specialists have shown strong interest in the deal.
  • THE REPUBLIC of Hungary has increased its syndicated loan from Eu300m to Eu400m. It will be signed today (Friday). The five year term loan carries a margin of 37.5bp, and is arranged by ABN Amro, Central European International Bank, Commerzbank and WestLB.
  • THE news that Mannesmann, the German diversified telecommunications group, is planning a jumbo Eu3bn convertible has sparked speculation of deals from other blue chip names that are still keen to raise equity linked debt finance despite the deteriorating market conditions. "Although the interest rate climate is slightly firmer than in the second quarter and stockmarket conditions are volatile, the cost of using this method of funding is still low," said one banker.
  • While swap spreads have traded at historic highs in recent weeks, the market has largely maintained these prices, rather than bidding them down as soon as a temporary panic passed. Nonetheless, borrowers are still finding it difficult to hit funding targets in both euros and dollars. For example, US financial services company Household Finance issued a Eu500m five year deal via ABN Amro and Deutsche, which was swapped back to floating dollars, a Household spokesman confirmed.
  • Procter&Gamble pounced on an unexpected lack of corporate dollar bonds this week to launch a blow-out $1bn global offering of 10 year notes and confirm the return of demand for dollar assets.
  • GLOBAL CO-ORDINATORS Mediobanca and Merrill Lynch have filed registration statements with the Italian stock exchange authorities for the privatisation sale of stock in Enel, the country's electricity utility. The deal has been expected for over six years and the two banks have been preparing the company for privatisation for at least that long.
  • Romanian government officials will host a series of investor presentations next week to drum up support for a debut euro issue for the cash-strapped sovereign. Visits to Milan, Frankfurt and London between September 15-17 will be followed by a final roadshow in New York on Monday, September 20.
  • Finland About 20 institutions attended the bank presentation of the Eu500m acquisition financing for Huhtamaki Oy. The arrangers are Citibank (books) and MeritaNordbanken (documentation and facility agent).