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THE SHARP correction in the US Treasury market following Federal Reserve chairman Alan Greenspan's comments on Wednesday about the possibility of future US interest rate hikes gave the Eurodollar market a much needed boost as yields started to move down to levels at which investors are once again looking to enter the market. Westpac Banking Corp took advantage of this renewed interest to issue the first successful dollar benchmark the market has seen for several weeks. The $500m five year bond was re-offered at 40bp over Treasuries. Joint lead managers Nomura and SBC Warburg Dillon Read said the deal had sold out very quickly and achieved all the criteria the issuer had set -- a successful benchmark debut in the fixed rate dollar market and a broadening of its investor base beyond its traditional floating rate note buyers.

THE ASIAN Development Bank was forced to pay more than initially anticipated this week when widening 10 year spreads hit its debut DM1.5bn Eurocurrency benchmark transaction. Price talk during roadshows for the deal had focused on a spread of 10bp to 12bp over Bunds but, in response to general spread widening of 3bp to 4bp, the issuer agreed to pay 14bp over to ensure its strategic bond enjoyed a successful launch on Wednesday.

THE AFRICAN Development Bank is set to launch a new benchmark in the Eurodollar market, with roadshows for an expected $300m five year offering due to end on Monday. Lehman Brothers will run the books on the new offering which follows the AfDB's second visit to the Eurorand sector, a R100m seven year deal led by Hambros this week. Thierry de Longuemar, the AfDB's treasurer, told Euroweek that the dollar transaction formed part of the supranational's policy of keeping institutional investors familiar with its product.

THE $9.5bn-plus sale of Telecom Italia shares looks set to go ahead despite this week's resignation of the country's government and turmoil in world stockmarkets."We have reviewed the transaction with the government, its advisers and the syndicate, and are proceeding as planned," said Charles Kirwan-Taylor, a managing director in the equity capital markets division of BZW, one of the global coordinators on the sale alongside Mediobanca. "The fundamental investment case for the company has not changed."

THE $9.5bn-plus sale of Telecom Italia shares looks set to go ahead despite this week's resignation of the country's government and turmoil in world stockmarkets.

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FRANCE's privatisation of France Télécom has been a runaway success, with the institutional offering to domestic and international investors closing earlier this week some 20 times oversubscribed, and the retail offer attracting 3m private shareholders by last night.

FRANCE's privatisation of France Télécom has been a runaway success, with the institutional offering to domestic and international investors closing earlier this week some 20 times oversubscribed, and the retail offer attracting 3m private shareholders by last night. Institutional investors submitted orders for more than Ffr400bn ($67bn) in shares, while the size of the retail offering -- which closes on Tuesday (October 14) -- has already been increased to accommodate the rampant demand.

THE BELEAGUERED Eurodollar sector received a welcome boost this week when Westpac launched the first successful five year issue to come to the market since the beginning of September. Bankers said that careful premarketing of the $500m issue, led by Nomura and SBC Warburg, combined with the borrower's willingness to adopt a sensible approach to launching its first strategic fixed rate issue, to provide a template for other issuers looking to complete large-scale financings in a still nervous market.

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