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CADES WILL price its debut euro transaction today (Friday), a five year Eu1bn issue that sets a benchmark in the maturity. The issue is the agency's first issue in the single currency, but follows Cades' strategy of setting liquid benchmarks. Benchmark issuance in euros has been concentrated at the long end of the curve so far this year, with arbitrage difficult in the five year sector. Bankers suggest that Cades took advantage of the gap in the market by keeping fixed rate euros.

Market commentary: Compiled by Jim Webber, TD Securities, London.

Argentina Arranger Bayerische Landesbank has completed the $40m syndicated loan facility for Banco de Galicia y Buenos Aires SA. The facility is priced at 225bp over Libor, matures on June 4 1999 and is for general funding purposes.

EMERGING market worries once again took its toll on the US corporate bond markets, with new issuance volume remaining unseasonably light in both the investment grade and junk bond sectors. Despite relatively strong cash positions held by investors, neither buyers nor issuers seemed willing to commit to deals until Brazil's currency crisis subsided.

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NATIONAL GRID, the acquisitive UK power transmission group, this week raised £1.2bn through the sale of one third of its 74.3% stake in Energis, the telecommunications group. The divestment was praised as a shrewd move on the part of the vendor, taking advantage of the buoyant market for telecom stocks. Many telecom shares have risen by up to 40% since September, on the back of the combined recovery in global stockmarkets and the strong wave of global consolidation sweeping through the industry. The latest and largest deal involves the $62bn purchase by Vodafone of AirTouch.

MORGAN STANLEY Dean Witter is to lead the sale of stock in Equant, the Atlanta and Amsterdam-based data communications carrier. The US firm has the books on this prized mandate after leading the group's $810m IPO last year with Salomon Smith Barney. The sale should raise around $3.5bn based on the current valuation attached to the company's shares.

Angola Warburg Dillon Read reports that general syndication of the $500m oil contract pre-export financing for Sociedade Nacional de Combustiveis de Angola (Sonangol) is progressing smoothly and that retail should close on time on February 9.

THE LATIN new issue market has been left in tatters, with major issuers abandoning plans for euro and dollar denominated issues and underwriters predicting little chance of any issuance in the foreseeable future now that Brazil has descended into a full blown currency crisis. Argentina had been planning a euro deal for this week to take advantage of a rally on the back of Brazil's decision to float the Real last Friday.

ARGENTINA is taking steps towards developing a monetary treaty between the US and Latin America that would rid the latter of its currency volatility and become the Americas' equivalent of European monetary union. "What we are proposing is an alternative somewhere between dollarization and an Americas-wide monetary union," said central bank president, Pedro Pou, yesterday (Thursday).