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Ford Motor Credit to issue US$124.1 mln in HK bonds

HONG KONG, Sept 23 (Reuters) - Ford Motor Credit Co, the financing arm of Ford Motor Co , said on Tuesday it would issue at least US$124.1 million in Hong Kong retail bonds, making it the first foreign firm to tap the city's retail debt market for funds.

Ian Gosling, director of business strategy at Ford Financial Asia Pacific, said the proceeds from the issue would be used to fund the business of Ford Motor Credit.

The company is issuing a minimum of HK$500 million (US$64.1 million) in three-year Hong Kong dollar notes, which have a coupon of four percent.

It is also selling at least US$60 million in four-year U.S. dollar notes. They carry a coupon of four percent for the first two years, and five percent in the subsequent two years if they are not called by the issuer.

Both tranches will be issued at par, with subscription to begin on Wednesday. Standard Chartered is the lead manager of the deal, with Commercial Bank of China (Asia) Ltd acting as the co-lead manager.

Ford Motor Credit, which provides vehicle and dealer financing, recently issued US$3 billion of global debt through Banc of America Securities, Morgan Stanley and UBS Investment Bank.

(US$1=HK$7.8)