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TELSTRA Corp launched a highly successful benchmark DM1bn euro-fungible issue yesterday (Thursday) in a bid to position the Australian telecoms credit at the heart of the emerging euro currency sector, ahead of its formal introduction next January. Launched one day ahead of market expectations on the back of strong institutional demand by bookrunner Deutsche Morgan Grenfell and joint lead Credit Suisse First Boston, the 10 year deal was priced at 99.472 with a coupon of 5.125% to yield 34bp over the 5.25% January 2008 Bund.

* Credit Suisse First Boston has appointed a new head of Asian debt syndication following the relocation of Chris Tuffey back to London. Alistair Moss, formerly the bank's head of fixed income in New Zealand, has moved to Tokyo where he has been appointed as a director reporting to global syndicate head Simon Meadows. Tuffey, who has been based in Asia for the past 41/2 years and worked for CSFB for 12 years, will take up a new position on the London syndicate desk from May 5. Regarded as one of the most forthright and down-to-earth participants of the Asian debt markets, Tuffey said that his most lasting memory and proudest achievement will be of the bank's success with a $750m offering for Indonesia's PT Pindo Deli last year.

BARELY a couple of weeks after the international markets reopened to Korean issuers, so many of the country's second tier corporates are trying to launch convertible bonds that the Ministry of Finance is considering limiting the number of new issues to five over the forthcoming months. Various companies from the major Chaebols, including Hyundai Construction and Daewoo Heavy Industries, are lining up to raise funds to provide working capital. However, bankers point out, investor demand is not assured. "Finding demand is the key for these issues. Investors only want the first tier companies - but they are not the ones that need the capital," said one banker.

THE expected rush of Korean borrowers into the international debt markets immediately behind last week's groundbreaking $4bn sovereign global bond looks unlikely to materialise for at least a couple of weeks as potential issuers wait to see where spreads stabilise. The strong secondary market performance of the Republic of Korea's twin tranche global has gratified and disillusioned in equal measure; with investors reaping substantial gains and highly vocal sections of Korea's domestic press berating the government for setting an unnecessarily high benchmark.

THE FIRST convertible bond from Thailand since the Asian crisis will be launched next month, potentially benefiting from the success of recent straight equity issues from the country. Salomon Smith Barney and Paribas have been mandated as joint bookrunners for the $100m CB from International Finance Corporation of Thailand, which is 30% owned by the government and finances private sector industrial investment. The deal is in due diligence and "the earliest the deal could be completed is mid-May," said one analyst.

THE PHILIPPINES National Power Corporation (Napocor) will launch imminently its long-awaited Yankee bond, with roadshows likely to kick off either at the end of next week or beginning of the week after. Bankers said that the state owned group is hoping to take advantage of the positive sentiment generated by the recent global bond from the Republic of the Philippines, which has continued to feed through into strong secondary market trading.

MORGAN Stanley Dean Witter has emerged as the frontrunner to win the mandate for the convertible bond from Wharf Holdings, following the bank's recent CB for New World Infrastructure (NWI). Bankers caution, however, that the terms should not be as aggressive as for the Wharf issue, claiming that the constant supply of convertibles from Hong Kong is starting to tire investors. NWI traded out immediately after launch. "Morgan Stanley have kept up a cracking pace in the convertible sector since the beginning of the year but NWI showed even they could put a foot wrong if they do not listen to the market," said one banker.

GOLDMAN Sachs is preparing a $250m convertible bond for Asia Pulp & Paper, confirming many analysts' belief that the company would exploit the 75% rise in its share price over the past three months by issuing new shares or equity linked instruments. Bankers expect the terms of the deal will be aggressive. The coupon is expected to be between 3% and 5%, the conversion premium will be between 10% and 20% and the redemption premium between 500bp and 600bp over Treasuries. "That is punchy, although the equity story seems to support the terms - devaluation has benefited the company."

FIL-ESTATE Land, the Philippine property developer, is preparing to launch a $40m convertible bond that is likely to be purchased in its entirety by a Morgan Stanley Dean Witter unit. The transaction will have a seven year maturity and will be convertible into local shares giving on conversion a 15% stake to the purchaser, which is expected to be either MSDW's asset management arm or the investment bank itself.

SOLE bookrunner Merrill Lynch will next week begin roadshows for its $175m convertible bond for China Petrochemical Development, for which Core Pacific Yamaichi is joint lead manager. The deal, which will have a $25m greenshoe, is expected to have a 10 year maturity, an issue price of par and an annual coupon of between 1% and 1.5%.

BANKERS are bracing themselves for another 10 year issue from a Brazilian borrower that has the potential to underperform on the back of overly aggressive pricing. "It's going to be a weird deal," said a syndicate head on Wall Street when asked about BNDES's plans to launch a $750m issue in the next few weeks. The development bank appears to have learnt nothing from the Federative Republic of Brazil's recent $1.25bn 10 year transaction earlier this month, which was awarded after a competitive bid and bombed after being launched at an unrealistic spread.

TWO Latin American banks are vying for attention in the nascent emerging market sub-sector of the euro denominated bond market. Banco Hipotecario Nacional should be first off the mark, with Chase to lead a Eu200m three year issue next week.