Northern Indiana Public Service Company - Page 4

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            funds so that petitioner could construct additions to its utility                         
            properties.  To accomplish this, Finance was to issue notes in                            
            the Eurobond market.  The Eurobond market has been aptly                                  
            described in a 1984 Senate Finance Committee report as follows:                           

                        A major capital market outside the United States                              
                  is the Eurobond market.  It is not an organized                                     
                  exchange, but rather a network of underwriters and                                  
                  financial institutions that market bonds issued by                                  
                  private corporations (including but not limited to                                  
                  finance subsidiaries of U.S. companies), foreign                                    
                  governments and government agencies, and other                                      
                  borrowers.                                                                          
                        In addition to individuals, purchasers of the                                 
                  bonds include institutions such as banks (frequently                                
                  purchasing on behalf of investors with custodial                                    
                  accounts managed by the banks), investment companies,                               
                  insurance companies, and pension funds.  There is a                                 
                  liquid and well-capitalized secondary market for the                                
                  bonds with rules of fair practice enforced by the                                   
                  Association of International Bond Dealers.  Although a                              
                  majority of the bond issues in the Eurobond market are                              
                  denominated in dollars (whether or not the issuer is a                              
                  U.S. corporation), bonds issued in the Eurobond market                              
                  are also frequently denominated in other currencies                                 
                  (even at times when issued by U.S. multinationals).                                 
                  [S. Prt. 98-169 (Vol. I), at 417 (1984).]                                           

                  On August 28, 1981, petitioner filed a petition with the                            
            Public Service Commission of Indiana for a certificate of                                 
            authority and an order approving and authorizing petitioner to:                           
            (1) Issue a note or notes in an amount not to exceed $75 million                          
            to Finance; (2) pay all expenses of issuance of its notes and the                         
            Euronotes connected therewith; and (3) apply the net cash                                 
            proceeds from the loan of the Euronote proceeds as requested in                           
            the petition.  Essentially, the petition provided that the                                




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