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  • UNITED BANK Of Switzerland has announced that it expects to record a third quarter loss of between Sfr500m and Sfr1bn, largely as a result of the emerging market crisis and the ensuing volatility in global stock markets. Its involvement with troubled hedge fund Long Term Capital Management also features strongly in the prognosis.
  • Citibank has the mandate to arrange an $800m facility for Arthur Andersen. The loan will be offered to US institutions and a select number of European banks. Bankers say the borrower will use the loan to defend its possession of Andersen Consulting.
  • TALKS ON the restructuring of $40bn of GKO/OFZ Russian government bonds remained deadlocked this week amid signs that western bankers are losing patience with the Russian authorities. Although the deadline for the proposed debt exchange has been extended from today (Friday) until October 2, the war of words between the Russian government and western bankers has escalated alarmingly.
  • Asset backed securities: * Delphi Ltd
  • The mandate to develop the Tawellah power and water desalination project in Abu Dhabi has been awarded to CMS. CMS, advised by Barclays Capital, beat Tractebel advised by Chase, to the mandate to develop the project which has an estimated overall cost of $750m.
  • AKBANK will be the next Turkish bank to tap the international syndicated loan market when it hopes. to refinance its $250m one year trade financing signed in November 1997. That facility was arranged by Bank of Tokyo-Mitsubishi, Paribas, Barclays, Bayerische Vereinsbank, Dai-Ichi Kangyo, Deutsche, Dresdner Bank Luxembourg, ING Barings, Royal Bank of Canada and SG. The Turkish loan market has undoubtedly been one of the most successful of 1998.
  • LEAD MANAGERS Goldman Sachs and ABN Amro Rothschild overcame turbulent market conditions last night (Thursday) to complete the Dfl 4bn equity financing for Dutch supermarket group, Koninklijke Ahold NV. The group was on track to raise the capital long before the global financial crisis hit world stockmarkets and has already earmarked the funds to finance its acquisition of Giant Stores in the US.
  • The $150m three year loan-style FRN being arranged by Dresdner Bank Luxembourg SA and Warburg Dillon Read for Yacimientos Petroliferos Fiscales is priced at 150bp over Libor for the first year and thereafter rises by 25bp annually. There are four levels of fees which range between 45bp and 12.5bp.
  • ARGENTINA'S finance undersecretary Miguel Kiguel confirmed this week that he is close to signing an agreement that would secure an $8.1bn support package to cover all of the republic's financing needs to the beginning of July 1999. The money, to come from the Inter-American Development Bank, the World Bank and some local banks, will be enough to cover the $2bn that Argentina needs to raise for the rest of this year, $4bn in the first quarter of 1999 and some $2bn in the second quarter.