TWO more international borrowers are expected in the Hong Kong dollar market soon, seeking the equivalent of almost HK$2 billion, according to bankers. The borrowers are the Industrial and Commercial Bank of China (ICBC) and an arm of the American Express Bank. ICBC, one of China's specialised banks, is expected to seek to raise US$125 million in Hong Kong, probably through a floating-rate note (FRN) issue. Bankers said the deal would be for only two years, making it more attractive to lenders interested in China risk. Floating-rate issues in Hong Kong have tended to be concentrated in three-year and five-year maturities. American Express Bank is believed to be seeking to raise HK$1 billion in Hong Kong, possibly with access to the liquidity adjustment facility (LAF) operated by the Hong Kong Monetary Authority. Bankers said the deal probably would be in the form of a floating-rate certificate of deposit (FRCD). No pricing information is available on either deal, and it is understood the American Express issue has been held up by discussions on whether documentation should cover the future ownership of American Express Bank. Bankers expected Sakura Bank to be one of the banks bringing American Express to Hong Kong for the issue. FRNs and FRCDs are debt securities which pay a floating-rate of interest. The LAF eligibility allows holders to engage in repurchase agreements with the Hong Kong Monetary Authority. This means they can sell the debt securities to the authority after agreeing to buy them back at an agreed price and date, allowing the investor more flexibility in managing liquidity and giving the authority a useful tool for fine-tuning the market. So far, the LAF has been restricted to Hong Kong corporates such as Wharf (Holdings) and Sun Hung Kai Properties, and to banks such as Hongkong Bank and Standard Chartered Bank. US, Thai and Japanese issuers have also raised funds through LAF-eligible deals.