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The prospect of a new benchmark transaction from the Republic of China has taken one step forward and two steps back following a deterioration in relations between the People's Republic and Taiwan. While the sovereign is known to be keen to set a new dollar benchmark within the next couple of months, it is proposing to do so against a rapidly worsening backdrop soured by the bombing of the Chinese embassy in Belgrade, failed negotiations to join the World Trade Organisation, and continual speculation about a currency devaluation.

A total of ¥14.7bn was raised from the sale of 2.4m Uni-Charm shares this week with the issue seven times oversubscribed. The offering was priced at a 1% discount to a share price that rose consistently during marketing. Merrill Lynch was global coordinator for a sale which had been seen as part of a growing trend in Japan: the sale of cross-holdings between companies as restructuring gains ground among the country's corporates.

Commonwealth Bank of Australia (CBA) made final use of its triple-A government guarantee this week, increasing three existing transferable certificate of deposit (TCD) issues by A$500m. Following the expiry of the guarantee, which only covered deposits, the bank falls back on its AA-/Aa3 credit rating for future issuance. Observers hailed the latest deal as a blow-out, with the increases to all three lines priced at the tight end of their indicative ranges.

Formal roadshows may begin next week for an upper tier 2 capital raising by the Development Bank of Singapore (DBS). Following new regulations issued by the Monetary Authority of Singapore (MAS) last December, the bank is hoping to account for up to 2% of its capital adequacy ratios in the form of tier 2 debt. Having officially appointed Morgan Stanley Dean Witter as rating adviser for alternative capital structures last week, the DBS is already said to have begun an informal premarketing process.

European investors in Australian mortgage backed securities were offered deals from two new originators in the last week - brought by two new bookrunners. Last Friday ABN Amro launched $500m of senior and junior MBS for its non-bank subsidiary, Australian Mortgage Securities Ltd - and this week Warburg Dillon Read priced $492m of senior bonds for Colonial State Bank.

Australia Austar's A$369m to A$423m IPO is believed to be at least ten times covered. The Credit Suisse First Boston and Morgan Stanley Dean Witter-led deal is due to close and price over the weekend.

The Thai banking sector continued its rehabilitation this week with Industrial Finance Corporation of Thailand (IFCT) raising $175.85m despite sluggish local demand. In order not to breach the 49% foreign ownership limit, 51% of the new issue had to be sold to local institutions, although locally registered foreign owned institutions qualified as local buyers.

Kowloon Canton Railway Corporation (KCRC) emerged as Asia's newest and most promising borrower this week with the launch of its $1bn debut Eurobond. Ranking as the largest ever pure Eurobond from the region and the biggest single tranche offering from Hong Kong, the success of the 10 year transaction turned many of the region's traditional borrowing assumptions on their head.

Korea Electric Power Corporation (Kepco) made an impressive debut in the euro-denominated bond market this week with a Eu300m offering. Priced in line with the BBB-/Baa3 rated group's ambitious expectations, the five year deal ranked as the first euro denominated deal from Korea and only the second ever corporate deal from Asia following Hutchison Whampoa's debut in March.

HSBC Investment Bank successfully closed New World China Land's $568m IPO this week with the international tranche of the deal around two times oversubscribed. Despite some last minute jitters as the Hang Seng experienced a volatile week, the relatively large market capitalisation of the company and its sizeable freefloat attracted investors eager to reweight their portfolios.

Merrill Lynch, Salomon Smith Barney and Dong Won Securities completed a $880 ADR sale for Posco this week at a tight discount to the prevailing price. The deal was around two times covered despite an increase in the size of the stake sold by Korea Development Bank (KDB), from 23.2m ADRs to 26.84m ADRs.

Austria Raiffeisen Zentralbank has arranged a Asch1bn club revolver for Hild Haustechnik Group, one of Austria's leading traders of sanitary equipment. The deal was oversubscribed but not increased and will be used for working capital.