HBOS says to provide funding to repay Grampian ABCP

LONDON, Aug 21 (Reuters) - British bank HBOS HBOS.L said on Tuesday it would provide facilities to its Grampian Funding commercial paper programme to repay maturing asset-backed commercial paper.

HBOS said in a statement it had taken the action due to current market conditions and would continue to provide facilities "until such time as market pricing improves to a level acceptable to HBOS".

It said the action would have no material adverse impact on the bank.

Short-term funding has been disrupted and borrowing costs have risen in recent weeks as concerns about the U.S. subprime mortgage crisis have spilled over into other markets.