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. 5612) will be held on Wednesday 15 October 2003 for settlement on Thursday 16 October 2003.
An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 5612) will be on offer, of which HK$120 million will be made available for offer to the public through non-competitive tender. 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$1,080 million). The Notes will mature on 18 December 2006 and will carry interest at the rate of 5.20% per annum payable semi-annually in arrears. The Notes closed at 109.48 with an annualised yield of 2.13% on 3 October 2003.
Members of the public who wish to submit non-competitive tender applications for the Notes may do so through Recognised Dealers which are also appointed by the HKMA as Retail Exchange Fund Notes Distributors. Competitive tender applications for the Notes may be made through any of the Market Makers or Recognised Dealers. Competitive tender applications may also be submitted through brokers who are Exchange Participants of the Stock Exchange of Hong Kong via the Hong Kong Securities Clearing Company Limited (HKSCC) or, for those who hold Investor Accounts at the HKSCC, directly through the HKSCC. The HKSCC will collect tender applications from its participants and submit them to the HKMA for processing. While an applicant can apply for the Notes through both competitive and non-competitive tenders, an applicant may submit only one non-competitive tender application through a Retail Exchange Fund Notes Distributor. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender.
The list of Market Makers or Recognised Dealers (including Retail Exchange Fund Notes Distributors) 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.
Successful bidders of the reopened issue will be required 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 HKMA's website, the Reuters screen (HKMAOOE), Bloomberg, the Telerate screen (9913), the Bridge News screen and the CCASS terminal for CCASS Broker/Custodian/Participants. CCASS Investor Participants may also enquire about the tender results through the CCASS Phone System. Applicants for non-competitive tender may enquire about the tender results through the Retail Exchange Fund Notes Distributors.
Hong Kong Monetary Authority
6 October 2003
HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
______________________________________________________
Tender information of the reopening of 5-Year Exchange Fund Notes :-
Issue Number : 5612
Stock code : 4090 (EFN 5.20 0612)
Tender Date : Wednesday, 15 October 2003
and Time 9:30 a.m. to 10:30 a.m.
Issue and Settlement : Thursday, 16 October 2003
date
Amount on Offer : HK$1,200 million
(up to HK$120 million for
non-competitive tender)
Maturity : 38 months
Maturity Date : 18 December 2006
Interest Rate : 5.20% per annum payable
semi-annually in arrears
Commencement of : 9:00 a.m., 6 October 2003
submission of non-
competitive tender bids
by retail investors
Deadline for : 12:00 noon, 13 October 2003
submission of non-
competitive tender
by retail investors
Interest Payment Dates : 17 Dec 2003
17 Jun 2004
17 Dec 2004
17 Jun 2005
19 Dec 2005
19 Jun 2006
18 Dec 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 (16 October 2003)
for the tender amount is
HK$861.92 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 errors).
Members of the public who
wish to apply for the Notes
through non-competitive tender
may only do so through a
Recognized Dealer which has
also been appointed by the HKMA
as a Retail Exchange Fund Notes
Distributor. Members of the
public who wish to apply for
the Notes through competitive
tender 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 (including
Retail Exchange Fund Notes
Distributors), 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 5612 listed on the Stock
of Hong Kong Exchange of Hong Kong
Price/Yield Conversion Table of EFN 5612
at tender for reference* only :-
Yield-to-Maturity Price Yield-to-Maturity Price
1.09 112.80 2.09 109.54
1.14 112.63 2.14 109.38
1.19 112.47 2.19 109.22
1.24 112.30 2.24 109.06
1.29 112.14 2.29 108.90
1.34 111.97 2.34 108.74
1.39 111.81 2.39 108.59
1.44 111.64 2.44 108.43
1.49 111.48 2.49 108.27
1.54 111.32 2.54 108.12
1.59 111.15 2.59 107.96
1.64 110.99 2.64 107.80
1.69 110.83 2.69 107.65
1.74 110.67 2.74 107.49
1.79 110.50 2.79 107.33
1.84 110.34 2.84 107.18
1.89 110.18 2.89 107.02
1.94 110.02 2.94 106.87
1.99 109.86 2.99 106.72
2.04 109.70 3.04 106.56
2.09 109.54 3.09 106.41
*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
6 October 2003
