Tender for the reopening of 5-Year Exchange Fund Notes to be held on Friday, 18 March 2011

Press Releases

09 Mar 2011

Tender for the reopening of 5-Year Exchange Fund Notes to be held on Friday, 18 March 2011

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. 05Y1403) will be held on Friday, 18 March 2011 for settlement on Monday, 21 March 2011.

An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 05Y1403) 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 Notes reserved for non-competitive tender are 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 24 March 2014 and carry interest at the rate of 1.67% per annum payable semi-annually in arrears. The Notes Fixings on 8 March 2011 as 101.39 with an annualized yield of 1.21%.

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 submit 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
9 March 2011

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

______________________________________________________

Tender information of the reopening of 5-Year Exchange Fund Notes :-

Issue Number           : 05Y1403

Stock code             : 4188 (EFN 1.67 1403)

Tender Date            : Friday, 18 March 2011
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Monday, 21 March 2011
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          : 24 March 2014 

Interest Rate          : 1.67% per annum payable
                         semi-annually in arrears

Interest Payment Dates : 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 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 (21 Mar 2011)
                         for the tender amount is
                         HK$407.21 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       05Y1403 listed on the Stock
of Hong Kong             Exchange of Hong Kong

 

Hong Kong Monetary Authority
9 March 2011

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

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

     0.21         104.38         1.21       101.37
     0.26         104.23         1.26       101.22
     0.31         104.08         1.31       101.07
     0.36         103.92         1.36       100.93
     0.41         103.77         1.41       100.78
     0.46         103.62         1.46       100.63
     0.51         103.47         1.51       100.49
     0.56         103.31         1.56       100.34
     0.61         103.16         1.61       100.19
     0.66         103.01         1.66       100.05
     0.71         102.86         1.71        99.90
     0.76         102.71         1.76        99.76
     0.81         102.56         1.81        99.61
     0.86         102.41         1.86        99.47
     0.91         102.26         1.91        99.33
     0.96         102.11         1.96        99.18
     1.01         101.96         2.01        99.04
     1.06         101.81         2.06        98.90
     1.11         101.66         2.11        98.75
     1.16         101.52         2.16        98.61
     1.21         101.37         2.21        98.47 

* 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
9 March 2011
Latest Press Releases
Last revision date : 09 March 2011