Tender of 5-Year Exchange Fund Notes to be held on Monday, 23 March 2009

Press Releases

12 Mar 2009

Tender of 5-Year Exchange Fund Notes to be held on Monday, 23 March 2009

The Hong Kong Monetary Authority (HKMA) announces that a tender of 5-year Exchange Fund Notes will be held on Monday 23 March 2009 for settlement on Tuesday 24 March 2009.

A total of HK$1,000 million 5-year Notes will be on offer, of which 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 24 March 2014 and will carry interest at the rate of 1.67% 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 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 the HKSCC, directly through HKSCC, for submission to the HKMA for processing. Competitive tender applications for the Notes must be submitted through any of the Eligible Market Makers on the current published list, which 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. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender.

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 HKSCC may also obtain the tender results from Stock Exchange Participants/Brokers, or for applicants who hold Investor Accounts at HKSCC's CCASS from the CCASS terminal for CCASS Broker/Custodian/Participants and CCASS Phone System.

 

Hong Kong Monetary Authority
12 March 2009

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

______________________________________________________
Tender information of 5-Year Exchange Fund Notes :-

Issue Number           : 05Y1403

Stock code             : 4188 (EFN 1.67 1403)

Tender Date            : Monday, 23 March 2009
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Tuesday, 24 March 2009
Date

Amount on Offer        : HK$1,000 million
                         (up to HK$5 million for
                          non-competitive tender)

Commencement of/       : Please refer to requirements
Deadline for             as set down by HKSCC
submission of non-
competitive tender bids
by retail investors
through HKSCC

Maturity               : Five years

Maturity Date          : 24 March 2014

Interest Rate          : 1.67% p.a.

Interest Payment Dates : 24 Sept 2009
                         24 Mar 2010
                         24 Sept 2010
                         24 Mar 2011
                         26 Sept 2011
                         26 Mar 2012
                         24 Sept 2012
                         25 Mar 2013
                         24 Sept 2013
                         24 Mar 2014 

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 HKSCC may do so  
                         through Stock Exchange
                         Participants/Brokers, or for 
                         those who hold 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 any of 
                         the Eligible Market Makers on 
                         the current published list.
                                                    
Other details          : Please see Information 
                         Memorandum published or 
                         approach Eligible Market 
                         Makers, HKSCC, or brokers who
                         are Exchange Participants of 
                         the Stock Exchange of Hong                                                      
                         Kong

 

Expected commencement  : 25 March 2009 
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
 
      0.67        104.91        1.67        100.03 
      0.72        104.66        1.72         99.80 
      0.77        104.41        1.77         99.56 
      0.82        104.16        1.82         99.33  
      0.87        103.92        1.87         99.09  
      0.92        103.67        1.92         98.86  
      0.97        103.42        1.97         98.62  
      1.02        103.17        2.02         98.39 
      1.07        102.93        2.07         98.16  
      1.12        102.68        2.12         97.93                                                      
      1.17        102.44        2.17         97.70  
      1.22        102.19        2.22         97.47  
      1.27        101.95        2.27         97.24   
      1.32        101.71        2.32         97.01   
      1.37        101.47        2.37         96.78  
      1.42        101.23        2.42         96.55  
      1.47        100.99        2.47         96.33  
      1.52        100.75        2.52         96.10  
      1.57        100.51        2.57         95.88  
      1.62        100.27        2.62         95.65  
      1.67        100.03        2.67         95.43   

* 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
12 March 2009
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Last revision date : 12 March 2009