Tender of 2-Year Exchange Fund Notes to be held on Tuesday, 15 November 2011

Press Releases

04 Nov 2011

Tender of 2-Year Exchange Fund Notes to be held on Tuesday, 15 November 2011

The Hong Kong Monetary Authority (HKMA) announces that a tender of 2-year Exchange Fund Notes will be held on Tuesday 15 November 2011 for settlement on Wednesday 16 November 2011.

A total of HK$1,200 million 2-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 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 18 November 2013 and will carry interest at the rate of 0.26% 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
4 November 2011

 

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
_____________________________________________________

Tender information of 2-Year Exchange Fund Notes :-

 

Issue Number           : 02Y1311

Stock code             : 4020 (EFN 0.26 1311)

Tender Date            : Tuesday, 15 November 2011
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Wednesday, 16 November 2011
Date

Amount on Offer        : HK$1,200 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               : Two years

Maturity Date          : 18 November 2013

Interest Rate          : 0.26% p.a.

Interest Payment Dates : 16 May 2012
                         16 Nov 2012
                         16 May 2013
                         18 Nov 2013

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  : 17 November 2011
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

    -0.74          102.01         0.26         100.00
    -0.69          101.91         0.31          99.90
    -0.64          101.81         0.36          99.80
    -0.59          101.71         0.41          99.70
    -0.54          101.61         0.46          99.60
    -0.49          101.51         0.51          99.50
    -0.44          101.41         0.56          99.41
    -0.39          101.30         0.61          99.31
    -0.34          101.20         0.66          99.21
    -0.29          101.10         0.71          99.11
    -0.24          101.00         0.76          99.01
    -0.19          100.90         0.81          98.91
    -0.14          100.80         0.86          98.82
    -0.09          100.70         0.91          98.72
    -0.04          100.60         0.96          98.62
     0.01          100.50         1.01          98.52
     0.06          100.40         1.06          98.43
     0.11          100.30         1.11          98.33
     0.16          100.20         1.16          98.23
     0.21          100.10         1.21          98.13
     0.26          100.00         1.26          98.04

* 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
4 November 2011

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Last revision date : 04 November 2011