Eksportfinans sells $29.5 million notes linked to China Select; J.P. Morgan arranges two notes for Barclays

By Sheri Kasprzak

New York, Jan. 23 - Heading up structured products news Tuesday was a $29.505 million offering of notes linked to the Goldman Sachs China Select index priced by Eksportfinans ASA.

One market source said the offering indicates the enthusiasm towards Chinese stocks.

"That's a good size," he said of the notes. "Chinese stocks are making serious gains right now and it looks from this like investors are eager to cash in on that."

The equity structurer noted that as Chinese stocks reach record highs, this may spark more offerings linked to Asian indexes or currencies.

"The market is ripe for notes like this," he said. "Investors latch onto the movers and Chinese stocks are moving."

Most of the underlying stocks on the China Select index are denominated in Hong Kong dollars. The index charts 30 Chinese stocks.

Priced at 100.75

The one-year notes, priced at 100.75, pay out any positive return on the index. Investors are subject to any negative returns.

The final index level will be determined by averaging the closing levels of the index on Feb. 13, 2008, Feb. 14, 2008, Feb. 15, 2008, Feb. 19, 2008 and Feb. 20, 2008.

J.P. Morgan prices two deals

Elsewhere in structured products news, J.P. Morgan Securities Inc. priced two offerings for Barclays Bank plc, just a week after the investment bank announced plans to price more notes for rival Morgan Stanley.

J.P. Morgan priced $12.08 million in return enhanced notes linked to the Russell 2000 index and $11.185 million in annual review notes linked to the S&P 500 index on behalf of Barclays.

News of the offerings comes on the heels of an announcement that J.P. Morgan will price 0% annual review notes linked the S&P 500 index, 0% buffered return enhanced notes linked to the Dow Jones Euro Stoxx 50 index and 0% buffered return enhanced notes linked to the Nikkei 225 index for Morgan Stanley.

A spokesman at J.P. Morgan said his firm could not comment on the deals at this time.

Earlier this month, J.P. Morgan announced plans to price other notes for Morgan Stanley, including two 0% annual review notes also linked to the S&P 500 index.

JPMorgan's $18.01 million notes

In other news, JPMorgan Chase & Co. priced $18.011 million in 0% buffered return enhanced notes due Jan. 30, 2008 linked to the Nikkei 225 index.

In a recent interview, a market source based in New York said the Nikkei will be popular for notes like the buffered return enhanced notes priced Tuesday, remarking on the strength of the index and its expected gains looking forward.

The payout at maturity will be par plus double any positive return on the index up to a maximum return of 20%. Investors will share in any losses beyond 10% at a rate of 1.1111% per 1% drop below 10%.

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