Eksportfinans upsizes Asia deal to $86 million; Lehman prices $5.5 million FX notes

By LLuvia Mares

New York, Oct. - Activity in the structured products sector was thriving. Eksportfinans ASA made news after upsizing an offering of notes linked to the Goldman Sachs Asia Select index via Goldman Sachs & Co. to $86 million.

The size increase added a further $20.875 million to the notes.

Eksportfinans priced the original notes at $1,007.70 on Sept. 28 and the additional notes at $1,040.40 on Oct. 5.

The index reflects a weighted basket of 30 Chinese, Indian, Indonesian and Singaporean securities.

At maturity, investors will receive par plus the index return.

Goldman, Sachs & Co. is the agent.

Lehman prices $5.5 million FX notes

Lehman Brothers Holdings Inc. priced a $5.5 million issue of zero-coupon principal-protected foreign exchange notes due Oct. 13, 2009 linked to the best of three baskets of currencies.

"The FX deals continue to be attractive, given the fluctuations in and opportunities against the USD," said a market specialist.

The first basket includes the Brazilian real with a 33.34% weight, the Argentine peso with a 33.33% weight and the Mexican peso with a 33.33% weight, all versus the dollar.

The second basket includes equal weights (25%) of the Israeli shekel, Hungarian forint, Turkish lira and the Russian ruble, all versus the dollar.

The third basket includes equal weights (25%) of the Indonesian rupiah, Indian rupee, Malaysian ringgit and the Singapore dollar, all versus the dollar.

At maturity, investors will receive par plus 150% of the greatest of the three basket returns. If none of the baskets appreciates against the dollar, investors will receive par.

Lehman Brothers Inc. will be the underwriter.

Eksportfinans prices EAFE-linked notes

Also from Eksportfinans was an offering of $38,930,000 of 0% enhanced participation notes due May 19, 2010 linked to the MSCI EAFE index via Goldman, Sachs & Co.

"Goldman continues to impress with good volume right out of the chute," said a market observer.

If the final index level is greater than the initial index level, investors will receive par plus 125% of the index gain.

If the index stays at 80% of its initial value or higher but finishes below par, the payout will be par. Investors will be fully exposed to any decline in the index beyond 80%.

"Its good economics for investors and a terrific raise-up through the asset management wholesaling channel," said a market observer.

AIG to price notes linked to Latin currencies

For the next year and a half, investors in American International Group, Inc.'s planned offering of principal-protected notes due May 2009 linked to a basket of Latin American currencies will have their eyes closely on four currencies.

AIG is linking the notes to a basket consisting of equal weights of the Argentine peso, the Brazilian real, the Chilean peso and the Mexican peso, all against the dollar.

The payout at maturity will be par plus any gain on the basket times a participation rate that is expected to be between 220% and 250%. The exact participation rate will be set at pricing.

Investors will receive at least par.

The notes are expected to price in October.

Merrill Lynch & Co. is the underwriter.

RBC plans notes linked to PHLX Gold and Silver Sector

With the gold and silver sector currently thriving, Royal Bank of Canada plans to price an offering of 0% enhanced return notes due Nov. 7, 2008 linked to the PHLX Gold and Silver Sector index.

The notes will price on Oct. 26.

The payout at maturity will be par plus triple any index gain, subject to a maximum return that will be 24% to 26% and will be determined at pricing. Investors will be fully exposed to any decline in the index.

RBC Capital Markets Corp. will be the agent.

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