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To: Enigma who wrote (21627)	10/14/1998 11:13:00 AM
From: waldo	Read Replies (1) \| Respond to of 116779

Euro signals new life in bond market by ANTONIA FEUCHTWANGER With the birth of the single currency less than three months away, the euro-denominated Eurobond market is showing signs of activity after the summer's turmoil interrupted its expansion. Investor presentations begin today in Paris for Mediocredito Centrale, the development bank of Italy, which plans a debut issue in euro, while Daiwa Securities has taken advantage of an apparent vogue for the euro in Japan. Daiwa's 100 million euro bond, denominated in the ecu basket currency until one-for-one conversion to euro on 1 January, was for the Kingdom of Denmark. It was announced earlier this week but according to the International Insider service was sold by Daiwa the previous week. Daiwa, which has just refocused its London operations mainly on Japan-related activities, underwrote and sold the entire deal itself. Carol Hird, syndicate manager at Paribas, which has a strong presence in euro Eurobonds, commented: "Some Japanese institutions are very concerned about how to account for the legacy currencies (such as the French franc and Deutschmark which are joining the euro). They would like to go straight to the euro." She added: "A lot of reports about the euro have got through to savers on the street in Japan, who are now very interested. At the beginning of this year the market for ecu/euro bonds was very small but it has grown fast." The yen's bounce back last week has helped make the euro relatively cheap. Warburg Dillon Read this week increased its 100 million euro issue for America's GECC to 200 million while the bank is currently making presentations for a 175 million euro issue for Generalitat de Catalunya, a Spanish regional authority. Paribas itself is advising Mediocredito Centrale on its still unformed plans to issue bonds in Europe's new single currency. The Italian bank is effectively State-guaranteed but its rating is A1-/A. In most European countries, according to Paribas, its debt is zero-weighted for capital adequacy purposes, which is attractive for bank investors. The bonds could be fixed or floating rate. Mediocredito lends to small businessses and development projects, sometimes subsidising other banks' loans to growing companies. It has a 41% stake in Sicily's largest bank, which has depressed its rating thanks to worries about credit quality in a relatively poor part of Italy. © Associated Newspapers Ltd., 14 October 1998 This Is London