The Hong Kong Monetary Authority (HKMA) announces that a tender of 2-year Exchange Fund Notes will be held on Tuesday, 14 August 2007 for settlement on Wednesday, 15 August 2007.
A total of HK$1,200 million 2-year Notes will be on offer, of which HK$200 million will be made available for offer to members of the public who wish to submit non-competitive tender bids through Retail Exchange Fund Notes Distributors (the "Distributors") under the Retail Exchange Fund Notes Programme, and HK$5 million will be made available for offer to members of the public who wish to submit non-competitive tender bids through Hong Kong Securities Clearing Company Limited (HKSCC). If the amount of Notes reserved for non-competitive tender is under-subscribed, the non-subscribed amount will be added to the portion of notes for competitive tender (initially set at HK$995 million). The Notes will mature on 17 August 2009 and will carry interest at the rate of 4.25% per annum payable semi-annually in arrears.
Members of the public who wish to submit non-competitive tender applications for Notes that are open to the Distributors under the Retail Exchange Fund Notes Programme may do so through the Distributors. Members of the public who wish to submit non-competitive tender applications for Notes that are open to HKSCC may do so through Stock Exchange Participants/Brokers or, for those who hold Investor Accounts of the Central Clearing and Settlement System (CCASS) at HKSCC, directly through HKSCC, for submission to the HKMA for processing. Competitive tender applications for the Notes must be submitted through Eligible Market Makers. While an applicant can apply for the Notes through both competitive and non-competitive tenders, an applicant may submit only one non-competitive tender application through the same Distributor under the Retail Exchange Fund Notes Programme. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender.
The current published list of Eligible Market Makers and Distributors can be obtained from the HKMA at 55/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong (telephone 2878 1465), or from the HKMA's website at http://www.hkma.gov.hk.
The tender results will be published on the HKMA's website, the Reuters screen (HKMAOOE) and Bloomberg. Applicants who submitted non-competitive tender bids through the Distributors under the Retail Exchange Fund Notes Programme may obtain the tender results from the Distributors. For those who submitted through HKSCC may obtain the results from Stock Exchange Participants/Brokers, or for applicants holding Investor Accounts at HKSCC's CCASS from the CCASS terminal for CCASS Broker/Custodian/ Participants and CCASS Phone System.
Hong Kong Monetary Authority
2 August 2007
HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
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Tender information of 2-Year Exchange Fund Notes :- Issue Number : 02Y0908 Stock code : 4168 (EFN 4.25 0908) Tender Date : Tuesday, 14 August 2007 and Time 9:30 a.m. to 10:30 a.m. Issue and Settlement : Wednesday, 15 August 2007 Date Amount on Offer : HK$1,200 million (up to HK$200 million for non- competitive tenders open to Retail Exchange Fund Notes Distributors under the Retail Exchange Fund Notes Programme; and up to HK$5 million for non-competitive tenders open to Hong Kong Securities Clearing Company Limited) Maturity : Two years Maturity Date : 17 August 2009 Interest Rate : 4.25% p.a. Commencement of : 9:00 a.m., 3 August 2007 submission of non- competitive tender bids by retail investors through Retail Exchange Fund Notes Distributors Deadline for : 2:00 p.m., 10 August 2007 submission of non- competitive tender bids by retail investors through Retail Exchange Fund Notes Distributors Commencement of : Please refer to requirements /Deadline for as set down by HKSCC submission of non- competitive tender bids by retail investors through Hong Kong Securities Clearing Company Limited (HKSCC) Interest Payment Dates : 15 Feb 2008 15 Aug 2008 16 Feb 2009 17 Aug 2009 Tender Amount : Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non- competitive tender. Members of the public who wish to apply for the Notes through non-competitive tenders that are open to Retail Exchange Fund Notes Distributors (the "Distributors") under the Retail Exchange Fund Notes Programme may only do so through the Distributors. Members of the public who wish to apply for the Notes through non-competitive tenders that are open to Hong Kong Securities Clearing Company Limited (HKSCC) may do so through the Stock Exchange Participants/Brokers, or for those holding Investor Accounts at HKSCC's CCASS, directly through HKSCC. Members of the public who wish to apply for the Notes through competitive tender may only do so through Eligible Market Makers on the Current published list. Other details : Please see Information Memorandum published or approach Eligible Market Makers, Retail Exchange Fund Notes Distributors, Hong Kong Securities Clearing Company Limited, or brokers who are Exchange Participants of the Stock Exchange of Hong Kong Expected commencement : 16 August 2007 date of dealing on the Stock Exchange of Hong Kong
Price/Yield Table of the new EFN at tender for reference* only :- Yield-to-Maturity Price Yield-to-Maturity Price 3.25 101.98 4.25 100.08 3.30 101.88 4.30 99.99 3.35 101.79 4.35 99.90 3.40 101.69 4.40 99.80 3.45 101.60 4.45 99.71 3.50 101.50 4.50 99.62 3.55 101.41 4.55 99.53 3.60 101.31 4.60 99.43 3.65 101.22 4.65 99.34 3.70 101.12 4.70 99.25 3.75 101.03 4.75 99.16 3.80 100.93 4.80 99.06 3.85 100.84 4.85 98.97 3.90 100.74 4.90 98.88 3.95 100.65 4.95 98.79 4.00 100.55 5.00 98.70 4.05 100.46 5.05 98.61 4.10 100.37 5.10 98.51 4.15 100.27 5.15 98.42 4.20 100.18 5.20 98.33 4.25 100.08 5.25 98.24
* Disclaimer The information provided here is for reference only. Although extreme care has been taken to ensure that the information provided is accurate and up-to-date, the HKMA does not warrant that all, or any part of, the information provided is accurate in all respects. You are encouraged to conduct your own enquiries to verify any particular piece of information provided on it. The HKMA shall not be liable for any loss or damage suffered as a result of any use or reliance on any of the information provided here. Hong Kong Monetary Authority 2 August 2007