Key Information

Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Guidelines and Circulars

Press Releases

HKMC Launch of Retail Bond Issue under the HK$20 Billion Retail Bond Issuance Programme

The Hong Kong Mortgage Corporation Limited (HKMC) is pleased to announce today (Monday) the launch of a new retail bond issue with four series of notes (the "Issue") under the HK$20 Billion Retail Bond Issuance Programme (the "Programme").

The coupons of the four series of notes are as follows:

Currency Tenor Coupon
(payable semi-annually)
HKD 1-year 3.00%
HKD 3-year 3.50%
USD 1-year 3.10%
USD 1-year extendable for 1 year and further extendable for 1 year 3.10% for first year
3.50% for second year
4.00% for third year

The HKMC today signed an agreement with the two Underwriting Banks, namely, The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited for an underwriting amount of HK$300 million in respect of the 3-year Hong Kong dollar note of the Issue.

Under the Programme, the HKMC has appointed 17 banks from the Dealer Group of the Programme as Placing Banks to distribute the Issue to retail investors. The 17 Placing Banks are Bank of America (Asia), Bank of China (Hong Kong) Limited, CITIC Ka Wah Bank, Bank of Communications, Bank of East Asia, Chiyu Bank, Dah Sing Bank, DBS Bank, Hang Seng Bank, The Hongkong and Shanghai Banking Corporation Limited, Fubon Bank (Hong Kong), Liu Chong Hing Bank, Nanyang Commercial Bank, Shanghai Commercial Bank, Standard Chartered Bank (Hong Kong) Limited, Wing Hang Bank and Wing Lung Bank.

The Placing Banks will also perform the role of market makers for the Issue to facilitate transactions in the secondary market. This offering mechanism through Placing Banks was first introduced by the HKMC in 2001 and has proven highly effective in marketing bonds to retail investors. So far, the HKMC has issued seven retail bond issues totaling HK$10.4 billion.

HKMC retail bonds provide investors with an additional investment product to achieve a balanced investment portfolio and stable interest income. The Issue, with the terms and conditions highlighted in Annex A, will bring the following additional benefits to retail investors:

(a) Wide distribution network to reach out effectively to retail investors: the 17 Placing Banks have over 850 designated bank branches for handling subscriptions. In addition, retail investors can subscribe for the notes by telephone or Internet banking facilities provided by certain Placing Banks.

(b) Variety in currency, tenor and return to provide investment choices to retail investors: the Issue comprises four series of notes, allowing retail investors a choice of currency and tenor for portfolio diversification. The HKMC will launch two series of Hong Kong dollar fixed rate notes of 1-year maturity and 3-year maturity as well as two series of US dollar fixed rate notes of 1-year maturity and 1-year extendable up to 3-year maturity. It is the first-ever US dollar notes launched by the HKMC.

(c) Established market making arrangement to facilitate transactions in the secondary market: the 17 Placing Banks have committed to quoting firm bid prices for the notes during business hours until the maturity dates of the notes. This will ensure that retail investors can liquidate their holdings in the secondary market. To facilitate the Placing Banks to quote their offer prices, the HKMC reserves an additional issue amount of 30% on the issued amount for further draw down by the Placing Banks at any time during the life of the notes. The Placing Banks have also committed to quoting firm offer prices until the reserve amount is fully drawn down and will continue to do so on a best effort basis.

Investors may subscribe for one or more of the above series of notes. The actual subscription price for each of the two Hong Kong dollar notes will be determined by reference to the corresponding Exchange Fund Bill and Note as specified in the Issue Prospectus. Each of the two US dollar notes will be offered at a price of 100.

The offer period will commence at 9:00 a.m. on 19 July 2005 (Tuesday) and end at 2:00 p.m. on 26 July 2005 (Tuesday). The timetable for the issue is set out in Annex B. As applicants need to have a bank account and an investment account with any one of the Placing Banks whom they intend to instruct, they are encouraged to submit applications early and not to wait until the closing date of the offer period. The subscription money will only be deducted from the applicant's account on the closing date.

Retail investors can obtain the Programme Prospectus and the Issue Prospectus from any of the designated branches of the 17 Placing Banks (Annex C) or the office of the HKMC. Investors may also access the website of the HKMC ( for details of the Issue.

"The success of HKMC's debt issues has been attributable to HKMC's high credit ratings, which are the same as those of the Hong Kong SAR Government, and to the wide range of notes that can meet the different investment needs of retail investors," said Mr Peter Pang, Executive Director of the HKMC. "This move by the HKMC to issue US dollar denominated bonds will help to promote the development of a safe and efficient financial infrastructure for Hong Kong, based on a multi-currency, multi-dimensional platform."

Mr James H. Lau Jr., Chief Executive Officer of the HKMC, said, "The HKMC will continue to devote resources to improve its debt issuance programme. A mature retail bond market helps the HKMC to broaden its funding sources and also improve investment opportunities for investors."

The Hong Kong Mortgage Corporation Limited
18 July 2005

Annex A (MS Word, 59KB)
Annex B (MS Word, 39KB)
Annex C (MS Word, 23KB)

Last revision date: 1 August 2011
Tender Invitations
Legislative Council Issues
The HKMA Information Centre
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
Press Releases
Guidelines & Circulars
Forthcoming Events
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery