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With a view to further protecting investors in Hong Kong, the Hong Kong Stock Exchange and the Securities and Futures Commission (SFC) recently published a Consultation Paper on Regulation of Sponsors and Independent Financial Advisors.

One of the most tricky aspects of an M&A transaction involves the transfer of information during the due diligence stage. In Canada, this process has traditionally occurred through the use of a physical data room. But this method of due diligence is not without its problems and inconveniences. Since 2000, electronic data rooms (EDRs) have been increasingly used internationally in a variety of types of transactions. But M&A practitioners have been cautious in adopting EDRs to support their due diligence processes. This may be attributable to the sensitivity of information in M&A deals, security concerns and perceived costs associated with the new technology.

The Austrian Ministry of Justice has published a draft bill on financial collateral arrangements (Financial Collateral Act, www.justiz.gv.at/gesetzes/). Comments are to be submitted until June 30 2003. This is the first step to implement the rules set forth in the Financial Collateral Directive (Directive 2002/47/EC of the European Parliament and of the Council of June 6 2002 on Financial Collateral Arrangements) into domestic Austrian law. It is planned that the Financial Collateral Act will enter into force on December 1 2003.

The structure of the funding package for Pusan New Port has set a benchmark for Korean infrastructure projects. It is the first time both foreign banks and a foreign sponsor have been involved in a financing in Korea, and the first time that lenders have taken on the construction and market risk of a project. By Simon Black and Geoff O'Dea of Allen & Overy, and Ick-Ryol Huh and Seong Soo Kim of Kim & Chang

Financing has closed on the SR125 toll road, a groundbreaking public-private project in California. The $635 million deal is a rare example of a privately funded toll road in the US and is one of the first to use European-style financing technology for such a project.

Allen & Overy has become the first international firm other than Clifford Chance to win a mandate advising the arrangers of an Italian state securitization.

The Republic of Korea's recent $1 billion global note offering has set a new template for Asian debt deals by including collective action clauses (CACs).

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By Lars-Olof Svensson of Wistrand Advokatbyrå

John A Cahill, Chau Ho and Lin Huawei of Paul, Hastings, Janofsky & Walker reveal how US structured finance techniques are becoming increasingly popular with real estate developers needing more funding for projects in China. But there are obstacles to structuring these deals