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THE PIPELINE of Euro-convertibles from continental and US issuers continues to grow with issuers lining up for the third and fourth quarters of 1998. However, for the next two months, convertible issuance will be eclipsed by the vast array of primary and secondary straight equity. Among the noteworthy deals in the market is the $540m offering of Lyons (Liquid Yield Option Notes) for SGS Thomson, the Franco-Italian micro-electronics group. The offering coincides with the sale of straight equity in the group which involves a capital increase and a secondary sale by the two respective government shareholders.

GLOBAL co-ordinators Merrill Lynch and Merita are preparing to launch the sale of stock in Sonera, the renamed Finland Telecom, and are due to hold beauty contests for the appointment of a selling syndicate in the next few days. The timing of the offering will largely depend on the authorities' decision concerning the sale of shares in the merged oil, gas and electricity entity, IVO Neste.

COMPUTACENTER became the latest UK company to attract the interest of international and local equity investors this week when it completed the sale of its primary and secondary shares in a global offering led by Goldman Sachs. The 44.3m shares were priced at 670p, the top end of the indicated price range. This reflected the demand from investors, which pushed subscription levels to around 13 times the number of shares on offer.

THE SPANISH authorities will shortly launch their third privatisation sale of the year with the largest ever equity sale from the country -- the Pta1,164bn ($7.7bn) sale of stock in its national electricity giant, Endesa. The Spanish government has been the quickest off the mark this year in launching deals, taking advantage of continental European markets trading at all time highs. The ministry of finance in Madrid has already signed off on the final sale of stock in both the financial services group, Argentaria, and the national tobacco group, Tabacalera, which was completed earlier this month.

INTERNATIONAL investors are pouring into economically sensitive sectors such as construction, steel and raw materials, spurred by a succession of positive economic results throughout the EU. In the next few months several companies from these sectors will come to the market, either looking to raise capital or as vendors seeking to divest out of their holdings at the currently favourable prices.

HSBC WAS appointed lead manager in the sale of stock in Powszechny Bank Kredytowy (PBK) this week. There had been strong competition among international investment banks for the mandate, with the deal likely to raise around $250m. The sale will be one of the first capital increases for a recently privatised bank. HSBC has been working with the bank for some time. It had been due to lead the privatisation of PBK through a public flotation last year, but the Polish authorities shelved plans for a public offer in favour of a strategic sale and a placement which raised $300m.

THE ITALIAN treasury successfully concluded the sale of its national airline this week with the $450m offering of shares in Alitalia. The shares, already traded in Milan in a fairly illiquid float, were sold by Iri, the Italian state holding company which set an issue price of Lit28,500. Although the deal attracted strong levels of interest from local and international institutional investors, one of the concerns during the marketing period was the high trading price of the outstanding shares.

GOLDMAN SACHS is gearing up for the June launch of one of the most important sales to emerge from the Turkish market -- the international offering of stock in conglomerate Koç. The largely primary offering, set to be concluded in July, will consist of ordinary shares and GDRs and looks set to encompass a capital raising of between $200m and $300m. Goldman has held the books on the Koç sale since last year and the transaction has been eagerly awaited by investors for some time. The group is one of the largest of the country's conglomerates and has activities in an array of activities.

MOST NEW issues had a rough time in the mixed market conditions in the US this week. The jittery mood on Wall St as well as the volume and size of the deals being attempted meant a number of deals had to be postponed. For now the pipeline remains busy, with several large deals expected over the coming months. But investors, it seems, have become more choosy about what they buy.

China BA Asia has closed a $100m 364 day direct pay L/C facility for Chinatex Capitals Inc. The borrower is the financing vehicle for guarantor China National Textiles Import Export Corp which is controlled by the Ministry of Foreign Trade & Economic Cooperation (Moftec).

TWO POTENTIALLY benchmark-setting Chinese power project financings are taking on the syndicated loans market almost simultaneously. The deals' arrangers have cleverly opted to take differing routes into the market. However, this will still be a big test of bank appetite for these credits which are looking to raise a total of over $1bn in international loans.

THE REPUBLIC of Lebanon has asked banks to submit proposals for what will be the country's most audacious Eurobond funding exercise to date. Finance ministry officials in Beirut requested bids for a financing package which could see the B1/BB-/BB rated sovereign raise up to $1bn of 10 and 20 year money.