Standard Chartered Private Bank has raised over $1 billion from clients in Asia for four products, including fixed maturity plans (FMPs) and leveraged deposit products, Citywire Asia has learnt.
In January, the bank launched an FMP containing US dollar-denominated Asian bonds, comprising of sovereign, quasi-sovereign and corporate debt, maturing in 2020.
The short tenure of the product - just over two years - coupled with the floating rate feature was well received among clients in Asia.
This followed the launch of an FMP structured with Schroders in September last year, focused on investment grade emerging market debt. The product raised $400 million at the bank.
FMPs are closed-ended debt funds that consist of underlying bonds that mature at the same time as the product.
These strategies saw a pick-up in demand from Asian private banking clients in the last two years, with Credit Suisse and Bank of Singapore raising over $1 billion from clients in Asia for their products.
In November and December last year, Standard Chartered also launched two leveraged deposit products with an Indian asset manager, consisting of term deposits with fixed tenor, in response to demand for income solutions from the bank’s clients.
According to sources, a majority of the interest came from the bank’s non-resident Indian clientele.
Offshore Indian money in Asia, the Middle East, East Africa and Europe, termed ‘global South Asia community’ (GSAC) at Standard Chartered, has become a key focus for the bank following a strategic review in 2015.
The push for GSAC assets picked up pace with the hire of Srinivas Sripurapu in June 2016, who heads the business globally. The emerging markets-focused bank hired a number of senior private bankers for the segment last year.