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  • Commonwealth Bank of Australia established its inaugural stand-alone international benchmark this week when it launched a surprise $500m fixed rate offering. Commonwealth Bank had been expected to test the market with a floating rate note, but the Aa3/AA-/AA rated issuer decided to opt for fixed rate funding in an attempt to reach a broader range of accounts.
  • The complexities of simultaneously bringing China Telecom to the equity and debt markets have made the group an unlikely candidate to be the next debt issuer from the People's Republic. Although roadshows for what is shaping up to be a $2bn equity offering and $1bn debt offering are scheduled for late October, bankers say that a number of factors could derail the whole process.
  • Korean banks continued their onslaught on the dollar market this week, as they seek cheap re-financing ahead of the October 8 deadline for the next coupon payment under the government's exchange programme. Korea Development Bank (KDB) made its second splash of the year in the sector yesterday (Thursday) with the launch of a $500m three year fixed rate offering via sole lead JP Morgan.
  • n Landesbank Hessen-Thüringen Girozentrale Rating: Aaa/AAA
  • Rating: AAA Amount: Eu250m (fungible with four issues totalling Eu1.5bn first launched 05/11/98) Öffentlicher Pfandbrief series 859
  • Criticism of the European Investment Bank's EARNs programme grew this week following the supranational's decision not to launch a new benchmark, but to reopen an existing line. Under the programme announced in early March the EIB is committed to raising Eu2bn each quarter through benchmarks of at least Eu2bn or through the reopening of outstanding EARNs.
  • Dollar swaps bucked their volatile trend of the past few weeks as the 10 year swap spread was range bound after the expected September deluge failed to materialise. Ten year swaps traded between 91bp and 94bp for most of the week, before settling at around 92.5bp mid-market yesterday (Thursday). The five year is dealing at around 77bp/78bp.
  • Duke Capital and Goldman Sachs set the trend in the US market this week by issuing blow-out global bonds. Duke, led by Merrill Lynch and JP Morgan, made its debut in the global market with a $1.5bn three tranche offering that was increased by $500m and priced at the tightest end of a revised spread talk. Goldman launched an own account $1bn 10 year deal, increased from $750m.
  • Czech Republic Sole lead arranger WestLB is in the market with a non-recourse acquisition financing for Messe Düsseldorf which is buying Bruno Trade Fairs & Exhibition Company.
  • Ecuador's currency and debt plunged yesterday as investors braced themselves for an imminent default on its $96m Brady bond interest payment. The country is poised to make history on Tuesday (September 28) by becoming the first country to default on its Brady debt. Although Ecuador had desperately sought time to pay the $96m by deferring the payment in August for a month, finance minister Alfredo Arizaga said this week the government had still not decided whether it would meet the payment.
  • Criticism of the European Investment Bank's EARNs programme grew this week following the supranational's decision not to launch a new benchmark, but to reopen an existing line. Under the programme announced in early March the EIB is committed to raising Eu2bn each quarter through benchmarks of at least Eu2bn or through the reopening of outstanding EARNs.
  • Argentina n Republic of Argentina