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PLANS to kick start Thailand's privatisation programme and raise much needed funds to ease the kingdom's financial crisis are being revived by the prospect of a government sell-down in Thai International Airways. Local bankers commented that a $250m to $300m divestment is in the final stages of receiving cabinet approval, with the company hoping to file an offering with the Stock Exchange of Thailand (SET) by November.

STANDARD & Poor's downgraded a number of Thai banks this week in a further blow to the financial sector's already stricken credit outlook. The senior debt of Bangkok Bank and IFCT was downgraded from the sovereign A- level to BBB+, Bank of Ayudhya from BBB to BBB- and Phatra Thanakit from BBB- to BB+.

WITH international attention focusing on Hong Kong ahead of next week's IMF/World Bank meetings, the World Bank and the European Investment Bank this week ended the dearth in the Hong Kong dollar primary bond market with a pair of new issues. Since US agency Fannie Mae launched the sector's first global bond on July 9, Asia's currency crisis has frustrated new issuance, with speculative attacks on the Hong Kong dollar causing secondary market spreads to widen sharply.

DEBUT Euromarket issues for two of Russia's leading banks this week proved that the bid for Russian assets remains as strong as ever with both transactions emerging for larger than expected amounts. First to hit the screens was a $200m two year FRN for trade finance bank Vneshtorgbank (VTB).

* The Russian region of Nizhny Novgorod will today (Friday) become the first Russian region to tap the international bond markets with a debut offering under the lead of ING Barings. The Ba2/BB- rated region is to launch a $100m five year Euro/144A issue.

PANAMA will today (Friday) announce the results of its 30 year global bond exchange offer -- a deal expected to emerge for around $750m in size. The offering, led by JP Morgan and BancBoston, has a price talk of 225bp to 250bp and bank sources not involved with the deal were last night expecting the clearing spread on its 30 year bond to be set at 250bp.

THE Republic of Turkey enjoyed a blow-out reception for its $600m 10 year Euro/144A offering this week, confounding the predictions of some market participants that the B1/B rated sovereign would struggle to attract a strong US investor bid for its paper. At $600m the transaction was the country's largest ever dollar issue and at 10 years its longest dated international bond since it lost its investment grade status in 1994.

SIGNS of a possible dimming of investor interest in Latin new issues emerged last night (Thursday) when Bachoco, the Mexican chicken processor, priced its equity offering at the lowest end of its price talk. The deal, led by JP Morgan, was priced at $17 per share, compared with a $17 to $19 indicated range. A total of 7.5m ADSs (with each ADS representing one B share and one L Share) were offered in the US, internationally and domestically.

THE LATIN markets are bracing themselves for the chance of another billion dollar plus global bond from a Latin sovereign -- this time from the Republic of Brazil, strongly rumoured to be planning an announcement of either a 10 year or a 20 year bond issue at the IMF meeting. Bankers said yesterday that the republic's central bank called for bids on either 10 year or 20 year global bonds around a month ago, with the intention of making a splash at the IMF, either with a blowout deal executed just prior to the fund's meeting, or with the announcement of a mandate.

Market report Compiled by Gerard Perrignon, Hambros Bank Ltd, London. Tel: +44 171-865 1759

BAYERISCHE Hypo-und-Vereinsbank is set to raise nearly DM1.5bn ($875m) from international investors as part of a DM3bn capital increase. JP Morgan will lead the global offering portion of the exercise, which completes a restructuring begun by Bayerische Vereinsbank's merger with Bayerische Hypo-Bank.

AS foreshadowed in Euroweek, SBC Warburg has been mandated to lead manage the recapitalisation for the Paris-based property group, Société Fonciere Lyonnaise (SFL). The bank will run the books on the process which will include the sale of a range of instruments to international and local investors. The company will raise Ffr600m through the issue of new shares where the proceeds will be used directly by SFL. Existing shareholders will then sell stock to raise up to a further Ffr600m. Additionally, the lead manager will construct an equity linked debt financing which will take the form of a Ffr1.2bn offering of convertible bonds.