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ROADSHOWS began in Hong Kong yesterday (Thursday) for a $350m project finance bond from Chinese infrastructure developer Cathay International Ltd. JP Morgan is lead manager for the issue, which bankers hope will set a new benchmark for a sector which though well regarded has suffered significant spread widening since October, in line with the market at large.

Modeling the term structure of interest rates has always been linked with complex probability theory and technical jargon that can act as a deterrent to exploring the world of derivative pricing.

THE BANGKO Sentral ng Pilipinas (BSP) has succeeded in drawing a dozen banks to commit $50m apiece to its three year club loan. Central monetary board officials said on Tuesday that the bank had already secured commitments totalling $600m, with a further five banks still considering whether to join the issue. Proceeds will be used to bolster foreign exchange reserves.

A UNIQUE conversion structure and credit enhancement ensured that the $180m offering from Teco Electric and Machinery was a blow-out success when it was priced yesterday (Thursday) at the most aggressive terms ever for a convertible from non-Japan Asia. Lead managers SBC Warburg and UBS said demand was overwhelming, with a total book of over $2bn. The $20m greenshoe is likely to be exercised in the next few weeks.

THAI Farmers bank is poised to launch an offering of $1bn in new shares which bankers hope will mark the start of a renaissance in the country's battered banking sector. Goldman Sachs has been appointed as sole bookrunner for the ambitious 386m share deal which, if successful, will make Thai Farmers the fourth largest company in Thailand in terms of market capitalisation.

THE KINGDOM of Thailand may launch a $500m Eurobond in the next two months, signalling the start of its planned $3bn to $5bn borrowing programme for the year. The country is bringing forward its return to the international markets, according to a finance ministry official, because it believes spreads have returned to a low enough level for the kingdom to raise funds to re-capitalise its banking system and revitalise the export sector.

The European Investment Bank (EIB) is in the final stages of launching only the second major straight bond issue this year in Taiwan's domestic market. Led by Citicorp, with Capital Securities as joint lead, the NT$6bn transaction looks set to be the first offering by an international borrower to incorporate a floating rate tranche. Bankers said that the five year deal, for which syndicate invitations were tendered yesterday (Thursday), is to have one NT$4.5bn fixed rate tranche and one NT$1.5bn FRN tranche.

PHILIPPINE fast food retailer Jollibee Foods Corporation priced its novel warrants issue this week, which used for the first time a structure that allows foreign investors to participate in the Philippine retail sector -- and gives international funds access to a highly successful company which is expanding in Asia. The offering raised around $106m, which surpassed the estimated $80m-$100m, from the sale of 220m warrants which will trade as shares on the Manila stock exchange.

* Merrill Lynch & Co Inc Rating: Aa3/AA-

THE FIRST international debt market offerings of 1998 from Hong Kong and China are likely to be launched in the higher yielding sector of the market, with preparations under way for an asset backed bond by Cathay International and a Yankee issue by Star Digital. Although both Hong Kong and China remain among a dwindling club of investment grade borrowers in the region, each deal is said to have been firmly targeted at US buyers looking for a pick-up in yield. JP Morgan, in association with up to five co-managers, has begun to market an infrastructure bond for Cathay International. ING Barings, meanwhile, has been on the road with Star Digital for the past three weeks.

VIETNAM cleared the final hurdle in its attempts to return to the international debt markets yesterday (Thursday) when it issued three tranches of Brady bonds totalling $553m, two months later than planned. The response from the market was muted, however, because of the country's deteriorating credit standing. Moody's placed its Ba3 rating for the sovereign on review for a possible downgrade last month and bankers believe a cut is almost inevitable given Vietnam's lacklustre approach to economic reform over the past year. That was evidenced last October, when the IMF held back the final $176m tranche of its three year $530m package.

THE revival of the Hong Kong equity market will face its first big test today (Friday). Joint lead managers ABN Amro and Bear Stearns will price the $250m-$300m 'H' share IPO for Yanzhou Coal Mining (YCC) which they abruptly pulled last October when the Hong Kong market plunged.