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Citibank this week completed the first collateralised loan obligation backed by pan-European corporate loans, as Salomon Smith Barney sold Eu280m of bonds in a Eu4bn synthetic securitisation. "The target customer base for our global relationship bank is the top 1,800 corporates in the world - about 40% of those are in Europe," said Marcus Giancaterino, head of new asset classes in Citibank's London securitisation group, which structured the deal with the bank's credit derivatives team. "We have freed up regulatory capital on a very high quality portfolio of loans."

THE FRENCH Trésor's privatisation sale of stock in Crédit Lyonnais has received an exceptional response from institutional and retail investors. The flotation of the bank, which has undergone a remarkable revival since its virtual bankruptcy a few years ago, was more than 20 times oversubscribed.

THE FRENCH Trésor's privatisation sale of stock in Crédit Lyonnais has received an exceptional response from institutional and retail investors. The flotation of the bank, which has undergone a remarkable revival since its virtual bankruptcy a few years ago, was more than 20 times oversubscribed.

Credit Suisse First Boston has won the mandate for a euro-denominated private placement for Estonian power utility Eesti Energia, likely to be the first in a series of international bonds for electricity companies in the region in the coming months. The offering, Eesti Energia's first in the international bond markets, will be marketed to investors in mid-July for completion at the end of July.

Roadshows for an inaugural euro-denominated bond by the Korea Electric Power Corporation (Kepco) will begin in Zurich next Tuesday. The company has finally been given the go-ahead by the Ministry of Finance and the Economy (MoFE), but only on condition that proceeds must not be immediately swapped out of euros.

n GMAC Canada Ltd

In a move away from its previously retail oriented issuance strategy, auto group DaimlerChrysler will launch its first institutionally targeted transaction later this month via ABN Amro and Deutsche Bank, a five to seven year issue of Eu1bn or more. DaimlerChrysler's change of tack highlights the diminishing role retail investors are playing in frequent issuers' funding programmes. Even last year borrowers such as TMCC began targeting institutions - partly because of the increasing institutionalisation of retail, partly because of institutions' desire for more liquid transactions.

THE SUPPLY of large, blue chip stocks from the German equity market is set to maintain momentum in the next six months as industrial consolidation continues. This week DaimlerChrysler announced its intention to spin off DASA, its aerospace division, in a stockmarket listing as part of its programme of streamlining its business and selling non-core assets.

Dresdner Kleinwort Benson and Morgan Stanley Dean Witter will this week reveal the structure of the combined equity and exchangeable bond offering in Clariant stock being sold by Hoechst.

SHARES in Deutsche Telekom staged a recovery this week to trade at Eu40.75 after heavy selling pressure on Friday - the final day of bookbuilding - forced the company's Eu10bn capital increase to be priced at Eu39.50. The shares were priced over the weekend in Frankfurt after a last-minute selling wave forced the share price down by more than 5% to below Eu40 in the last 30 minutes of extra trading on Friday.

UK hotel and gambling company Hilton Group, is expected to launch sterling and euro denominated bonds in around two week's time, inaugurating a £2bn Euro-MTN programme signed last Friday. No details are available on the size of the issues, but the sterling deal is likely to come in at 10 years while the euro deal may find a home at five years. Following the end of roadshows currently underway, Merrill will lead the sterling deal together with Barclays Capital; Merrill and ABN Amro will lead the euro portion.

Dresdner Kleinwort Benson and CSFB have won the coveted mandate to bring Brazil to the euro market for the first time this year. The deal, to begin roadshows in the week ahead, is expected to be a three year Eu300m to Eu500m offering in the 600bp area, a price which market participants believe will guarantee a successful transaction.