DUTCH banking giant ABN-AMRO is shopping around for Hong Kong dollars, but its pricing may be too tight for locals' taste, bankers say. According to several banks approached about the deal, ABN-AMRO is considering raising $1 billion through a five-year floating-rate certificate of deposit (FRCD) issue, but pricing is a potential problem. At least 10 banks are chasing the mandate, and a consortia is being formed, but several bankers said they had their doubts about joining a deal offering only about 33 basis points over three-month HIBOR (Hong Kong interbank offered rate) for a five-year investment. Despite the good credit quality of the bank - it is highly regarded in Europe and the US and has established itself in Hong Kong - local lenders expect more yield in such a deal. Corporate borrowing over that period of time have paid around 50 basis points over HIBOR. 'It's a good name, but if you're talking about 33 basis points, then personally I'm not going to join,' said a banker active in the FRCD market. If the deal catered to Hong Kong tastes, it would offer a three-year put, allowing investors the option of putting the paper back to the issuer. This, however, would probably drive pricing below 30 basis points, bankers said, making the FRCD even less attractive. Lacking the Hong Kong dollar deposit base of local banks, ABN-AMRO needed to fund lending to tier-two corporates - those companies below the top 20 of the Hang Seng Index - one banker said. Fees in this sector of the market were higher. It could raise other currencies very cheaply through the Eurobond market, a banker with British investment bank said. 'ABN-AMRO in Europe should easily raise funds, say US dollars, in Europe at LIBOR (London interbank offered rate) plus seven basis points,' he said.