Chase unit offers novel card issue.

In the first securitization of credit card receivables originated by a Hong Kong entity, Manhattan Card Co. Ltd., an issuer of standard and premium credit cards, has offered a $200 million credit card asset-backed issue.

The issue is being solely managed by Chase Securities Inc., the U.S. capital markets arm of Chase Manhattan Corp. A majority of Manhattan-Card is owned by Chase Manhattan Bank.

The certificates, the first assets originated in a foreign currency which have been securitized in the U.S. market, were priced at par, with a floating rate coupon of 25 basis points over the one-month London interbank offered rate. They have an average life of 4.9 years.

The issue is one of the first pieces of business conducted by Chase's newly formed global markets sector.

Stephen Chu, managing director of Manhattan Card, said crossborder securitization of assets represents the "most attractive source" of low-cost term financing.

Asset-backed securities are debt instruments collateralized by the cash flow pool of assets, such as credit card receivables, and provide investors with undivided ownership in the pool receivables.

-- Dean Tomasula

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