MANHATTAN Card Company, the credit card subsidiary spun off from the Chase Manhattan Bank, plans to put up its assets as security when borrowing funds to expand its business.
Manhattan Card managing director Stephen Chu Siu-tsun said the company would discuss the issue with the Commissioner for Banking soon after listing on the local stock exchange.
The public offer will close on June 21, while trading of shares starts on July 2.
Mr Chu said that Manhattan Card would be financially independent from the bank after its listing.
Asset securitisation is popular as a source of funding in the US banking industry. Often packaged assets are sold as bonds.
Mr Chu said the company would discuss the concepts and practical steps involved in this type of funding with the Banking Commissioner.