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RUSSIA replaced Asia as the primary focus of investor concerns this week, with yields on Russian Treasury bills soaring to over 80% and share prices tumbling by 11% on Wednesday. The shake-out was prompted by fears that a devaluation of the rouble could derail the entire economic reform process in Russia. Standard & Poor's added to the country's woes, placing its BB- sovereign rating for Russia on CreditWatch with negative implications. The rating agency said: "The government's high budget deficit -- in the context of domestic political uncertainties and a volatile financial environment for emerging market issuers -- is negatively affecting capital inflows."

* The roadshow begins next week for a Eu250m transaction for Lazio, the Italian region, which will be only the second major ultra long issue in euros and represents another leap forward for the naascent debt market. The Kingdom of Spain opened the long end in euros in February, raising Eu1bn with a 31 year deal that was lead managed by Barclays Capital, Credit Suisse First Boston, Deutsche Morgan Grenfell and Santander Investment.

THE ITALIAN government this week launched its sale of shares in the national oil and gas group, Eni, the fourth offering of stock in the company. The sale will be led by Eni's traditional lead managers, IMI and CSFB. The two firms have formed a slightly more streamlined group of selling banks than in the previous sales.

THE FRENCH government is set to launch its programme of state sales for 1998, issuing invitations for banks to pitch for the lead role in the privatisation of troubled French bank Crédit Lyonnais and approving the opening of the equity capital of state owned aerospace group, Aerospatiale. The flotation of Crédit Lyonnais shares will take place on a fairly fast time-table with the sale due to reach the markets in October and slated to raise between $1.5bn and $2bn in revenues for the government. The nomination of the global co-ordinator of the deal is likely to be made in the next few weeks.

THE MARKET for growth companies in the communications sector continues to provide promising opportunities for institutional investment. DLJ revealed that it will be global co-ordinator in the sale of shares in ICO Global Communication this week, just a week after the announcement that Equant, formerly Sita Telecommunications, will be floated in Amsterdam and New York.

India Lead arranger Chase Manhattan is approaching a number of banks to join as co-arrangers on the P&O Ports project in Mumbai.The $200m deal will be India's first privately financed port project and will be financed in rupees and dollars.

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Yen * Toho Zinc

Australia The A$1.932bn loan for Epic Energy (WA) Nominees Co arranged by Deutsche Morgan Grenfell, National Australia Bank, Sumitomo International Finance Australia and Toronto-Dominion Australia should close with a good response early next week. About 20 banks, both foreign and local, have committed with another couple waiting approval.

THE IRISH government has taken the first steps towards the relaunch of its privatisation programme by issuing an open invitation to international investment banks to advise on the flotation of national telephone operator Telecom Eireann.

THE IRISH government has taken the first steps towards the relaunch of its privatisation programme by issuing an open invitation to international investment banks to advise on the flotation of national telephone operator Telecom Eireann. Competition for the mandate has become intense with US firms vying with their European counterparts and some attempting to form links with local and foreign brokers in Dublin, including Davy, NCB, Goodbody and ABN Amro.