StanChart Has Busiest Month for Structured Note Sales This Year

Standard Chartered Plc (STAN) issued more structured notes in September than in any month this year as it focused on selling securities tied to the debt of emerging market companies and governments.

Britain’s second-largest bank by market value issued $316 million of notes during the period, more than double the $157.26 million sold in August, according to data compiled by Bloomberg. The data exclude securities where the amount of principal returned can vary.

The bank benefited from investor demand for products offering enhanced yields, Raghavan Rajagopalan, global head of structuring, and Brent Eastburg, global head of credit trading, said in an e-mailed reponse to questions. They also attributed growth to the bank’s pricing and structuring capabilities.

More than 90 percent of the notes were tied to the creditworthiness of countries including South Korea and Ghana, as well as India’s largest mortgage lender Housing Development Finance Corp. (HDFC) and infrastructure project finance provider IDFC Ltd. (IDFC)

Standard Chartered sold more credit-linked notes in September than any other bank, including DZ Bank AG, the leading issuer of structured notes this year. The Frankfurt-based bank raised $262.4 million from sales of credit-tied securities.

Credit-linked notes, which are debt securities with embedded derivatives, offer higher yields and maturities that may not be available in the bond market. Investors suffer losses if there’s a default for either the bank issuing the note or the reference entity.

To contact the reporter on this story: Alastair Marsh in London at amarsh25@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net

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