Debt issue boosted
FACED with strong demand for its latest issue of debt securities, Standard Chartered Bank has lifted the deal by 33 per cent to $2 billion, even though it originally ruled out such an increase.
It is the latest bank to benefit from ballooning appetite for debt securities which enjoy access to the liquidity adjustment facility (LAF) operated by the Hong Kong Monetary Authority.
Belgian Bank's dual-currency $500 million floating-rate certificate of deposit (FRCD) issue was increased to $2.1 billion - investors have the choice of buying Hong Kong dollar or US dollar FRCDs - because of strong appetite.
Philip Cracknell of the arranger, Standard Chartered Investment Banking - formerly Standard Chartered Capital Markets - said the bank's three-year FRCD had been increased after consultation with lenders.
He said 17 extra banks ended up joining the original nine planning to invest in the FRCDs.
He said 10 lead managers provided $1 billion in funding between them, with three co-lead managers offering another $180 million, and the issue was increased by agreement.
An FRCD is an issue of debt securities in which investors are paid a floating rate of interest - in this case, a coupon of 30 basis points (0.3 percentage points) over the one-month Hong Kong interbank offered rate.
