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  • Spain's leading airline, Iberia, this week became the first European airline to launch an enhanced equipment trust certificate (EETC), the secured borrowing tool that has become a major source of finance for US carriers. Deutsche Bank lead managed the issue of Eu117m of senior notes rated double-A by Duff & Phelps and Moody's and Eu39m of mezzanine debt rated A+/A1. Iberia will retain Eu39m of unrated notes from the financing, which will be used to buy six new Airbus A-320s worth Eu260m.
  • n JP Morgan this week launched its innovative 'CBO of CBOs', Zais Investment Grade Ltd (Zing), to a warm reception from European investors. The $345m deal is a standard managed cashflow collateralised bond obligation, but instead of high yield and emerging market bonds and loans, it is backed by mezzanine tranches from 20 other CBOs.
  • Euroweek visited Nomura's European headquarters at St Martin's-le-Grand to see what a typical day in the MTN business involved.
  • There was a time when the only way for an investment bank to gain prominence in the MTN market was to be the firm arranging the most programmes.
  • Europe's MTN market has always struggled to match the depth and breadth of its US counterpart, not least because of the lack of diversity among issuers in the market.
  • Last year's credit and liquidity crisis in the world's financial markets has knocked the development of the Eurorand market backwards. With credit concerns still a key factor among investors and with rand paper still yielding far more than other emerging market currencies, issuance has been dominated by vanilla bonds from top-rated names. Diversification of structures, issuers and the investor base has been put on the backburner.
  • ONE THREAT to the role of Euro-MTNs in the international markets, particularly for US issuers, is a possible change to the treatment of swaps by US companies back into dollars by the US Financial Accounting Standards Board (FASB).
  • Over the past five years, the structures favoured by Japan's retail and institutional investor base have changed constantly as buyers sought to counteract the fluctuations of the yen.
  • Neither a pure emerging market nor a developed economy, South Africa is almost impossible to pigeon-hole as a sovereign borrower. And it has a story to tell to which most of the world wants to listen.
  • There are many reasons behind the recent trend of South Africa's top companies relocating their primary stockmarket listings to the UK. Every company has its own motives. But all are agreed that the trend is based on purely commercial and strategic grounds. It has nothing to do with politics, or concern over the country's prospects.
  • As the process of establishing a Euro-MTN programme becomes more standardised - particularly in terms of the documentation used - what do issuers need to look out for?
  • One of the attractions of the MTN markets for issuers is that they can be tailored to suit indivivual needs. Euroweek spoke to funding officials at five leading MTN issuers - KfW, the World Bank, LBW, DNIB and OKB - about how they access the MTN market.