THE big banking mammoth, Hongkong Bank, ended the market's rumour-mongering yesterday by issuing its first floating-rate note - and it was enormous.
Being the first bank in Hong Kong to issue sub-ordinated debt, the size and its good reception attest to the bank's good credit quality. But it also gives a big dose of confidence to the local capital market.
Although the subordinated nature of the notes will have reduced banks' appetite for it - especially for those that are not allowed to buy subordinated paper - the strong selling group members will ensure that the paper will be placed to end-investors.
Instead of forming a large syndicate, Wardley chose to organise a selling group consisting of investment banks with large local fund management arms, such as Jardine Fleming and Schroders.
Apparently, these members will help place the paper with fund managers, who will then pass it on to end-investors.
To cater for international investors, a European, a Japanese and a US house were invited to complete the group.