ICO, the Spanish state-owned credit institution, has taken advantage of strong demand for short-term, top-rated debt to launch its largest dollar bond for almost four years, one of just a handful of European benchmark deals this year.

Credit Suisse First Boston, which has arranged seven ICO bond issues in 10 years, teamed up with Lehman Brothers and Dresdner Kleinwort Wasserstein to run the deal. It is Dresdner's first mandate from ICO since a benchmark dollar bond in July 2002.