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Currency overlay is becoming increasingly popular with investors who need to manage foreign exchange risk.

Orix Corp of Japan will launch an innovative two-pronged assault on the international equity markets next week with a ¥35bn straight equity deal and a ¥35bn Euro-convertible offering. Global co-ordinators for the sale are Daiwa, Merrill Lynch, JP Morgan and Warburg Dillon Read.

China Ocean Shipping (Group) Company, the country's largest shipping concern, this week completed the first stage of a future receivables securitisation that has been nearly two years in the making. Chase Securities placed $235m of five year notes privately with a single US institutional investor. The transaction forms part of a $300m securitisation programme mandated to Chase in November 1997. Cosco became the first Chinese entity to securitise future flows in August 1997, when BancBoston Securities launched a $300m deal backed by freight revenues from its US clients.

n The Democratic Republic of Sri Lanka has decided to postpone plans for an inaugural bond offering - for the second year in succession. Nearly two months ago, Citicorp and Salomon Smith Barney were mandated as ratings advisers to the government in its ambitious plan to bring a $150m to $200m five year fixed rate transaction to market by October.

The September rush in the Asian equity capital markets will begin in earnest next week, with Synnex Technology, Mosel Vitelic, Siam Cement, Thai Farmers Bank and Hyundai Motor commencing roadshows on Monday. Taiwan's Synnex will roadshow its offering in Asia next week and in Europe the following week, before pricing towards the end of the week of September 20 following the completion of roadshows in the US.

MACQUARIE Corporate Tele-communications will aim to capitalise on the enthusiasm for the second sale of shares in Telstra with a A$172m IPO that was launched on Monday. Macquarie's listing also follows the successful market debut of Hutchison Telecommunication a fortnight ago. The institutional tranche of Hutchison's A$309m deal was 15 times oversubscribed.

Japanese issuers produced deals in both the Swiss franc and yen Euro-convertible market this week. International Bank of Japan was bookrunner for a ¥3bn Euro-convertible from Atom Corp, while Nomura completed a Sfr30m deal for Kuramoto Seisakusho. Atom's Alpine convertible had a coupon of 0.125%. The bond comes with an issue and redemption price of par.

Stephen West has taken up a new senior position in the debt capital markets division of Merrill Lynch in London. As foreshadowed in Euroweek, Merrill won the services of the experienced West in the face of strong competition.

Belgium Fortis Finance has again turned to Chase for its loan financing needs. This time the Benelux banking group requires a $250m US swingline facility.

The German equity pipeline for the autumn is starting to fill up fast, with a raft of deals ranging from hi-tech companies listing on the Neuer Markt to spin-offs from some of Germany's leading corporate names. New issuance on the Neuer Markt has already started to pick up pace, with telephone banking group Entrium and network management services company Main Control poised to launch their respective offerings.

n Croatia's Agrokor this week tapped the European private placement market with a Eu31m five year floating rate offering via Rabobank. The company's debut international bond offering was guaranteed by the Baa3/BBB/BB+ rated Republic of Croatia. The lead manager declined to confirm the terms of the offering beyond the September 9, 2004 maturity and par issue/fixed

Market commentary: Compiled by Glenn Blackley,