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

Press Releases

12 Mar 2009

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

The Hong Kong Monetary Authority (HKMA) announces that the tender of Exchange Fund Notes with a maturity of 36 months through the reopening of existing 5-year Exchange Fund Notes (issue no. 05Y1203) will be held on Monday 23 March 2009 for settlement on Tuesday 24 March 2009.

An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 05Y1203) will be on offer, of which HK$5 million will be made available for offer to member 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$1,195 million). The Notes will mature on 19 March 2012 and carry interest at the rate of 4.06% per annum payable semi-annually in arrears. The Notes Fixings on 11 March 2009 was 108.36 with an annualized yield of 1.24%.

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 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 holding 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 the reopening of 5-Year Exchange Fund Notes :-

Issue Number           : 05Y1203

Stock code             : 4163 (EFN 4.06 1203)

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 for tender amount

Amount on Offer        : HK$1,200 million
                         (up to HK$5 million for non-
                          competitive tender)

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

Maturity               : 36 months 

Maturity Date          : 19 March 2012   

Interest Rate          : 4.06% per annum payable 
                         semi-annually in arrears 

Interest Payment Dates : 21 Sept 2009  
                         19 Mar 2010 
                         20 Sept 2010 
                         21 Mar 2011   
                         19 Sept 2011  
                         19 Mar 2012  

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 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 do so through any of the 
                         Eligible Market Makers on the
                         current published list.  

                         The accrued interest to be    
                         paid by successful bidders on 
                         the issue date (24 Mar 2009)  
                         for the tender amount is  
                         HK$27.81 per minimum   
                         denomination of HK$50,000.                                                      
                         (The accrued interest to be 
                         paid for tender amount     
                         exceeding HK$50,000 may not  
                         be exactly equal to the      
                         figures calculated from the   
                         accrued interest per minimum   
                         denomination of HK$50,000,     
                         due to rounding error).   

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  : The tender amount is fully
date of dealing on       fungible with the existing   
the Stock Exchange       05Y1203 listed on the Stock 
of Hong Kong             Exchange of Hong Kong   
 

Hong Kong Monetary Authority
12 March 2009

Price/Yield Table of the reopening of EFN at tender for reference* only :-    

Yield-to-Maturity  Price  Yield-to-Maturity  Price   

      0.24         111.36       1.24        108.25 
      0.29         111.20       1.29        108.10  
      0.34         111.04       1.34        107.95 
      0.39         110.89       1.39        107.80 
      0.44         110.73       1.44        107.65  
      0.49         110.57       1.49        107.50  
      0.54         110.42       1.54        107.35  
      0.59         110.26       1.59        107.19  
      0.64         110.10       1.64        107.04  
      0.69         109.95       1.69        106.89  
      0.74         109.79       1.74        106.75  
      0.79         109.64       1.79        106.60  
      0.84         109.48       1.84        106.45  
      0.89         109.33       1.89        106.30 
      0.94         109.17       1.94        106.15 
      0.99         109.02       1.99        106.00  
      1.04         108.87       2.04        105.85 
      1.09         108.71       2.09        105.71 
      1.14         108.56       2.14        105.56 
      1.19         108.41       2.19        105.41 
      1.24         108.25       2.24        105.27  

* 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