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ABC New York Branch Successfully Issued First Putable Floating-Rate Yankee CD

ABC New York Branch recently issued their first putable floating rate Yankee CD, of which amount is 70 million USD and maturity is two years. The new issuance marks another breakthrough in YCD issuance and liability management.

With support from the Head Office, ABC New York Branch has been actively exploring various funding sources to support Asset growth for the Branch while focusing on reducing tenor mismatch risk simultaneously. Issuing floating rate YCDs diversifies New York Branch’s liability portfolio and will enable the Branch to take advantage of low-cost funding in the local market. Issuance of floating CDs will also reduce interest rate risk exposure and improve asset-liability maturity structure.

New York Branch presently has $1.2 billion YCDs outstanding, which has become one of the most important components of the liability portfolio. Meanwhile, the New York Branch proactively explores new funding channels, researches new funding instruments, of which the commercial paper program preparation is well-undergoing and is expected to be launched this year. The success with floating rate YCD issuance further strengthened ABC’s brand recognition in the US domestic market, which also set a solid foundation for marketing other financial products for the future.