Tender of 10-Year Exchange Fund Notes to be held on Tuesday, 6 June 2006

Press Releases

25 May 2006

Tender of 10-Year Exchange Fund Notes to be held on Tuesday, 6 June 2006

The Hong Kong Monetary Authority (HKMA) announces that a tender of 10-year Exchange Fund Notes will be held on Tuesday 6 June 2006 for settlement on Wednesday 7 June 2006.

An amount of HK$800 million 10-year Notes will be on offer solely for competitive tender. The Notes will mature on 7 June 2016 and will carry interest at the rate of 4.83% per annum payable semi-annually in arrears.

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 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. 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.

The tender results will be published on the HKMA's website, the Reuters screen (HKMAOOE), Bloomberg, the Telerate screen (9913) 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
25 May 2006

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

______________________________________________________
Tender information of 10-Year Exchange Fund Notes :-

Issue Number           : 1606

Stock code             : 4152 (EFN 4.83 1606)

Tender Date            : Tuesday, 6 June 2006
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Wednesday, 7 June 2006
Date

Amount on Offer        : HK$800 million
                        (solely for competitive
                         tender)

Maturity               : Ten years

Maturity Date          : 7 June 2016

Interest Rate          : 4.83% p.a.

Interest Payment Dates : 7 Dec 2006
                         7 Jun 2007
                         7 Dec 2007
                         9 Jun 2008
                         8 Dec 2008
                         8 Jun 2009
                         7 Dec 2009
                         7 Jun 2010
                         7 Dec 2010
                         7 Jun 2011
                         7 Dec 2011
                         7 Jun 2012
                         7 Dec 2012
                         7 Jun 2013
                         9 Dec 2013
                         9 Jun 2014
                         8 Dec 2014
                         8 Jun 2015
                         7 Dec 2015
                         7 Jun 2016

Tender Amount          : Each tender must be for
                         an amount of HK$50,000 or
                         integral multiples thereof.
                         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  : 8 June 2006
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
 
     3.83          108.55         4.83          100.45
     3.88          108.13         4.88          100.06
     3.93          107.71         4.93           99.68
     3.98          107.29         4.98           99.30
     4.03          106.87         5.03           98.92
     4.08          106.45         5.08           98.54
     4.13          106.04         5.13           98.17
     4.18          105.63         5.18           97.79
     4.23          105.22         5.23           97.42
     4.28          104.81         5.28           97.05
     4.33          104.40         5.33           96.68
     4.38          104.00         5.38           96.32
     4.43          103.60         5.43           95.95
     4.48          103.20         5.48           95.59
     4.53          102.80         5.53           95.23
     4.58          102.40         5.58           94.87
     4.63          102.01         5.63           94.51
     4.68          101.61         5.68           94.15
     4.73          101.22         5.73           93.80
     4.78          100.84         5.78           93.45
     4.83          100.45         5.83           93.10

* 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
25 May 2006
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Last revision date : 25 May 2006