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AN $850m equity financing has been launched by Asia Pulp and Paper (APP) of Indonesia, designed to keep the Singapore incorporated company within its covenant limits. Sector analysts have expected the jumbo offering for some time given the NYSE-listed group's heavy issuance of debt over the past three years, which has resulted in its gearing levels hovering close to the 2.5 times covenant limit.

A LONE Thai issuer is to brave the high yield debt market with a $150m 144A offering, marking only the second bond from the kingdom since the baht was floated in early July. Roadshows for a 10 year deal by pulp and paper producer Advance Agro being led by Morgan Stanley have already visited Europe and Asia, before moving on to the US.

TWO Australian banks made their debuts in the domestic MBS market this week. Both deals should be rated triple-A by Moody's and Standard & Poor's,, as they are insured by the government guaranteed Home Loans Insurance Corporation. Colonial State Bank, formerly the State Bank of New South Wales, was introduced by SBC Warburg Dillon Read. The bank launched A$202m of floaters, through Colonial State Bank 1997-1 CATS Trust, and with a three year average life and expected maturity of seven years and eight months. Indicative price talk is 23bp to 26bp over the one month bank bill rate with the deal being priced next Tuesday (October 28).

SALOMON Brothers has reopened the Indonesian securitisation market, paralysed since July by the rupiah's plunge, with a blow out deal. Indonesian Motor Vehicle Funding 1997-1 Ltd, registered in the Cayman Islands, sold $177.6m of floating rate notes with an average life of 1.03 years and expected maturity in June 2000. The notes are wrapped by Financial Security Assurance, earning a triple-A rating from Moody's and Standard & Poor's.

A CONVERTIBLE bond offering for Taiwanese SRAM manufacturer Winbond scraped home yesterday (Thursday) with pricing at the far end of the revised deal's indicative range. The deal was hit by the mini-meltdown in the republic's stock and currency markets prompted by the government's decision to abandon its support of the Taiwanese dollar last Friday. Following those events bankers said most of the immediate pipeline from the country has been thrown into disarray.

* LTCB Securities has privately placed the first securitisation of auto leases in Japan, for Japan Leasing Auto, an affiliate of Japan Leasing Corp. The bank sold ¥10bn of bonds in 10 tranches, maturing every six months from April 1998 to October 2002. Investors receive a semi-annual fixed rate coupon. Under private placement regulations they must hold the bonds for at least two years.

HOPES that a $300m ADR by Pohang Iron & Steel (Posco) might breathe new life into Korea's primary equity market faded this week as the company confirmed that it will not go ahead with the issue until there is an improvement in market sentiment. Company officials told Euroweek that since the group has adequate cash balances, it has no need for immediate funds.

LATIN AMERICAN bond spreads widened between 30bp to 50bp yesterday as the emerging markets were hit by the Asian currency turmoil. Although there was a hefty amount of issuance in a variety of currencies from Latin American issuers this week, all new offerings were trading well below their highs on Thursday as hedge funds, dealers and small players began to lighten their positions in the market,

* Poland's leading private sector fixed line telecommunications company Netia is expected to a launch a dual offering of dollar and Deutschmark denominated debt today (Friday) via lead manger Merrill Lynch. Its maiden international bond is thought likely to comprise a $200m coupon bearing tranche, a $125m zero coupon element and a DM135m zero coupon portion. All three tranches will have 10 year non-call five tenors.

THE Venezuelan government's woes over its $4.4bn Brady bond swap for a $4bn 30 year global bond deepened this week when a preliminary congressional report concluded that it was not executed legally and was financially damaging. "The deal was carried out on the margin of the law and at great cost to the country," said Carmelo Lauria, president of the Venezuelan Chamber of Deputies Finance Committee on Wednesday.

PRIVATE Brazilian bank Banco Safra showed its peers the way to launch a successful international bond issue this week with its highly successful $200m three and five year Euro/144A transactions. The deal, led by JP Morgan, was the first top ranking bank deal in many months from Brazil that was not aggressively priced.

THE BRAZILIAN government released details of its sale of shares in Telebras yesterday (Thursday), confirming expectations that the country's telecom privatisation will be among the biggest the world has yet seen, involving the sell-off of 13 separate companies and Telebras's shares being split 13 ways. Communications minister Sergio Motta said that the Telebras system would be divided into three regional wireline holdings, nine cellular A-Band firms and one long distance operator -- Embratel.