Citicorp is gearing up

Citicorp is gearing up to issue $750 million to $1 billion in securities backed by credit card receivables, market sources said.

The issue will probably be distributed globally, and the securities will have maturities of five to ten years.

Citicorp, the most active bank issuer of asset-backed securities in 1990, was last in the market for globally distributed creditcard backed securities in May. That offering, which was lead managed by Salomon Brothers International, was increased in size after it hit the market, suggesting strong demand for the securities.

Since May, the yield on those securities has dropped from 96 basis points over Treasuries to less than 75 basis points over, indicating that demand for the securities remains healthy.

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