STANDARD Chartered Bank has launched a $1.6 billion floating-rate certificate of deposit (FRCD), hard on the heels of its successful $1.2 billion issue signed only four months ago.
Like the earlier deal, which was doubled from a planned issue size of $600 million, yesterday's issue matures in 1999.
Unlike that deal, Standard Chartered is seeking a rating for its latest borrowing. 'This specific issue will be rated by Moody's Investors Service,' said Philip Cracknell, a director of Standard Chartered Asia, which arranged the deal.
A rating is one of the three requirements of the Hong Kong Monetary Authority for an issue to qualify for access to the liquidity adjustment facility (LAF). This allows holders of the paper to access the facility operated by the authority.
The other requirements are that the issue must have at least two market-makers on a daily basis and that the Central Money-markets Unit must be custodian.
'It's quite expensive getting a rating, but it seems a lot of banks we've spoken to today are very attracted because the issue has access to the LAF,' Mr Cracknell said.
Hongkong Bank's recent $3.2 billion FRCD also qualified for LAF access, while Wharf (Holdings) is seeking a rating for its $1.5 billion floating-rate note issue launched two weeks ago.