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  • US OIL company Conoco this week showed that the jumbo corporate debt market was not only the preserve of the telecom and automotive sectors with the stunning success of its $4bn three tranche transaction. The deal marked Conoco's debut financing, with proceeds used to repay debt incurred in its $4.6bn spin-off from DuPont last October.
  • THE KOREA Development Bank's $1bn of five year global bonds were finally priced on Thursday to yield 225bp over Treasuries by bookrunners Chase and JP Morgan.
  • * DePfa Rating: Aa3/AA
  • DOLLAR swap spreads began to sag from the first moments of the week's business as, on Monday morning, it was clear that the week ahead would see considerable dollar-denominated issuance, much of which would be swapped out of fixed dollars. Consequently, in the first session of the week, the 10 year mid-market contracted to below 77bp and the five year midmarket softened to 63bp.
  • CSFB AND Cazenove have been appointed by UK electrical retailer Dixons to explore the possibility of seeking a stockmarket flotation for Freeserve, its internet service provider. The two banks will consider the option of a listing in addition to "strategic alternatives available to Freeserve to realise its full potential". The spin-off of Freeserve has been expected in the market for some time and the two investment banks will look at the best way to maximise shareholders' valuation of the group.
  • VOLKSWAGEN and Dresdner Bank have become the latest German blue chips to announce plans for large capital increases, adding to an already full pipeline of new issues in Germany over the next few months. Dresdner joins its three largest domestic banking rivals -- Deutsche Bank, Commerzbank and HypoVereinsbank -- in looking to raise new equity capital that will put around Eu8bn in new equity on the Frankfurt stockmarket.
  • Czech Republic The City of Prague has awarded a joint mandate to ABN Amro and Deutsche, to arrange a funding package consisting of a Eu200m 10 year bond, preceded by a Eu100m bridge loan for between three and six months, probably priced around 30bp over Libor.
  • * Bayerische Handelsbank Rating: AAA
  • EUROPÄISCHE Hypothekenbank der Deutsche Bank will soon launch the largest ever mortgage Pfandbrief transaction, a Eu2bn global which is set to boost the product's status on the international markets. Whereas public (Öffentliche) Pfandbriefe have been widely marketed outside Germany, mortgage (Hypotheken) Pfandbriefe have remained a domestically oriented product.
  • THE Eu180m one year term loan for Türkiye Garanti Bankasi was signed in London on Friday, April 9. The facility was increased from Eu140m after a heavy oversubscription. The deal has a margin of 55bp over Euribor, with co-arrangers taking 70bp flat for commitments of Eu9m. The top fee in general syndication is 65bp flat for managers taking Eu7.5m
  • THE RESURGENCE in the sterling sector of the high yield market continued this week, with further supply provided by the launch of a £100m issue for engineering components manufacturer Doncasters. Officials at lead manager Credit Suisse First Boston said that the issue, one of the highest rated junk bonds ever launched in the European market at Ba2/BB, was more than two times oversubscribed.
  • THE ARRANGING group of a jumbo credit facility for LVMH will emerge over the next week as the French brandy-to-luggage company closes in on its target Gucci. Most observers expect the group to consist of ABN Amro, Chase Manhattan, Citibank, Credit Suisse First Boston. The absence of the French banks is due to the conflicting nature of the takeover -- Gucci, LVMH and Pinault-Printemps Redoute (PPR) all have French banks as traditional lenders.