Tender for the reopening of 5-Year Exchange Fund Notes to be held on Monday, 13 January 2003

Press Releases

06 Jan 2003

Tender for the reopening of 5-Year Exchange Fund Notes to be held on Monday, 13 January 2003

The Hong Kong Monetary Authority (HKMA) announces that the tender of Exchange Fund Notes with a maturity of 38 months through the reopening of existing 5-year Exchange Fund Notes (issue no. 5603) will be held on Monday, 13 January 2003 for settlement on Tuesday, 14 January 2003.

An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 5603) will be on offer. The Notes will mature on 20 March 2006 and will carry interest at the rate of 5.20% per annum payable semi-annually in arrears. The Notes closed at 108.19 with an annualized yield of 2.54% on 3 January 2003.

Members of the public who wish to tender for the Notes may do so through any of the Market Makers or Recognised Dealers on the published list, which can be obtained from the HKMA at 30/F, 3 Garden Road, Hong Kong (telephone 2878 1465), or from the HKMA's website at http://www.hkma.gov.hk. They may also submit their tender applications through brokers who are Exchange Participants of the Stock Exchange of Hong Kong via Hong Kong Securities Clearing Company Limited (HKSCC) or, for those who hold Investor Accounts at HKSCC, directly through HKSCC. HKSCC will collect tender applications from its participants and submit them to the HKMA for processing. Each tender must be for an amount of HK$50,000 or integral multiples thereof.

Successful bidders of the reopened issue have to pay to the HKMA the respective bid price plus an amount equal to the interest accrued from the last coupon payment date to the allotment date of the reopened issue.

The tender results will be published on the Reuters screen (HKMAOOE), Bloomberg, the Telerate screen (9913), the Bridge News screen and CCASS terminal for CCASS Broker/Custodian/Participants. CCASS Investor Participants can also enquire about the tender results through the CCASS Phone System.

Hong Kong Monetary Authority
6 January 2003

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

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

Issue Number           : 5603

Stock code             : 4079 (EFN 5.20 0603)

Tender Date            : Monday, 13 January 2003
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Tuesday, 14 January 2003
Date for tender amount

Amount on Offer        : HK$1,200 million

Maturity               : 38 months

Maturity Date          : 20 March 2006

Interest Rate          : 5.20% per annum payable
                         semi-annually in arrears

Interest Payment Dates : 19 Mar 2003
                         19 Sept 2003
                         19 Mar 2004
                         20 Sept 2004
                         21 Mar 2005
                         19 Sept 2005
                         20 Mar 2006

Tender Amount          : Each tender must be for
                         an amount of HK$50,000 or
                         integral multiples thereof.
                         The accrued interest to be
                         paid by successful bidders on
                         the issue date (14 Jan 2003)
                         for the tender amount is
                         HK$833.42 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).
                         Members of the public who
                         wish to tender for the Notes
                         may approach Market Makers or
                         Recognised Dealers on the
                         published list, Hong Kong
                         Securities Clearing Company
                         Limited, or brokers who are
                         Exchange Participants of the
                         Stock Exchange of Hong Kong

Other details          : Please see Information
                         Memorandum published or
                         approach Market Makers,
                         Recognised Dealers, Hong Kong
                         Securities Clearing Company
                         Limited, 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       EFN 5603 listed on the Stock
of Hong Kong             Exchange of Hong Kong


Hong Kong Monetary Authority
6 January 2003
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Last revision date : 06 January 2003