RI bank to set FRCDs

RI bank to set FRCDs

HONG KONG (Reuter): Bank Ekspor Impor Indonesia's Singapore office has mandated Keppel Bank and Yamaichi Merchant Bank Singapore to arrange a floating rate certificate of deposit "tap" program, bankers said yesterday.

Certificates issued under the program must have a maturity of two years and issue amounts may not exceed US$20 million. Under the program, there is no limit on the number of FRCD issues the borrower may launch as long as they meet those requirements.

At present, two-year certificates issued under the program pay a margin of 35 basis points over the six-month London Interbank Offered Rate and are privately placed.

Management fees are seven basis points for lead managers committing US$10 million or more for an all-in return of 38.5 basis points and four basis points for managers committing US$3-9 million for an all-in return of 37 basis points

Pricing terms can be altered depending on market conditions.