Asian currency-linked deals may be popular in 2008; Goldman prices more Asian currency notes

By LLuvia Mares

New York, Dec. 6 - Notes linked to Asian commodities will continue to increase into the New Year, according to one market specialist.

"We are not done seeing these types of structures linked to Asian currencies," he said. "I'm sure we will be seeing a lot more next year."

Among Thursday's announcements, AB Svensk Exportkredit lifted to $134.71 million its issue of zero-coupon bull notes with an 18-month term linked to a basket of three Asian currencies brought to market via Goldman, Sachs & Co.

The latest $49.94 million add-on was priced at 103.8 while a $15.77 million add-on was priced at 102.15 on Nov. 28, and the original $69.01 million was priced at par on Nov. 16.

The basket consists of equal weights of the Chinese renminbi, the Malaysian ringgit and the Singapore dollar, each against the U.S. dollar.

The payout at maturity will be 104.5% of par plus 200% of any gain on the basket. Investors will receive at least 104.5% of par at maturity.

Goldman Sachs ups bull notes

In a similar offering, Svensk also upsized its issue of zero-coupon bull notes linked to a basket of two Asian currencies to $33.38 million via Goldman, Sachs & Co.

The $5.52 million add-on priced at 105.15.

Svensk priced $23.01 million of the 18-month notes at par on Nov. 16 and $4.85 million at 99.65 on Nov. 28.

The basket consists of equal weights of the Indonesian rupiah and the Philippine peso, each against the dollar.

The payout at maturity will be 104.5% of par plus 200% of any gain on the basket. Investors will receive at least 104.5% of par.

Notes linked to four currencies upsized

Continuing the same theme, Svensk Exportkredit priced $10.26 million of 0% bull notes due June 17, 2009 linked to a basket of four Asian currencies via Goldman Sachs.

The basket consists of the spot exchange rates against the U.S. dollar of the Indonesian rupiah, the Philippine peso, the Singaporean dollar and the Taiwanese dollar.

If the basket increases by at least 2.5%, the payout at maturity will be par plus 185% of any amount by which the basket performance exceeds 102.5%.

Otherwise, the payout will be par.

Also Thursday, Svensk Exportkredit said it upsized its issue of 0% bull notes due June 13, 2009 linked to a basket of three Asian currencies to $66.48 million from $46.24 million.

Goldman, Sachs & Co. is the underwriter.

This tranche priced at 102.5. The first tranche, for $46.24 million, priced at par on Nov. 22.

The basket consists of equal weights of the Chinese renminbi, the Malaysian ringgit and the Singaporean dollar, each against the U.S. dollar.

If the final basket level is at least 101% of the initial level, the payout at maturity will be 113.5% of par. Otherwise, the payout will be 97.5% of par.

Finally Goldman Sachs priced an additional $6.13 million of zero-coupon 97.5% principal-protected bull notes due June 13, 2009 linked to the Indonesian rupiah and the Philippine peso for issuer Svensk Exportkredit.

The company originally priced $15.62 million of the notes on Nov. 22. The total amount of notes priced is now $21.75 million.

The original issue priced at par, and the latest issued priced at 103.95.

The two currencies are equally weighted in a basket. If the basket appreciates relative to the dollar by 2.5% or more, the payout at maturity will be 113.5% of par. Otherwise, the payout will be 97.5% of par.

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