THE German state of Hesse launched a DM1bn transaction targeted at international investors this week in a deal which provides a pointer to the increasingly competitive capital market expected in Europe after monetary union. When the euro is in place, investors are likely to look to new credits which offer a pick-up to government bonds. Regional states, as quasi-sovereigns which sometimes have better economic fundamentals than the sovereign, are likely to be considered a prime option after 1999.
October 24, 1997