The Hong Kong Monetary Authority (HKMA) announces that a tender of 2-year Exchange Fund Notes will be held on Wednesday 16 May 2007 for settlement on Thursday, 17 May 2007.
A total of HK$1,200 million in 2-year Notes will be on offer, of which HK$200 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$1,000 million). The Notes will mature on 18 May 2009 and will carry interest at the rate of 3.90% per annum payable semi-annually in arrears.
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 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. 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 the same 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 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.
The tender results will be published on the HKMA's website, the Reuters screen (HKMAOOE), Bloomberg and CCASS terminal for CCASS Broker/ Custodian/Participants. CCASS Investor Participants can 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
4 May 2007
HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
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Tender information of 2-Year Exchange Fund Notes :- Issue Number : 02Y0905 Stock code : 4164 (EFN 3.90 0905) Tender Date : Wednesday, 16 May 2007 and Time 9:30 a.m. to 10:30 a.m. Issue and Settlement : Thursday, 17 May 2007 Date Amount on Offer : HK$1,200 million (up to HK$200 million for for non-competitive tender) Maturity : Two years Maturity Date : 18 May 2009 Interest Rate : 3.90% p.a. Commencement of : 9:00 a.m., 7 May 2007 submission of non- competitive tender bids by retail investors Deadline for : 2:00 p.m., 14 May 2007 submission of non- competitive tender bids by retail investors Interest Payment Dates : 19 Nov 2007 19 May 2008 17 Nov 2008 18 May 2009 Tender Amount : Each tender must be for an amount of HK$50,000 or integral multiples thereof. 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 : 18 May 2007 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 2.90 101.98 3.90 100.07 2.95 101.88 3.95 99.98 3.00 101.78 4.00 99.88 3.05 101.69 4.05 99.79 3.10 101.59 4.10 99.70 3.15 101.49 4.15 99.60 3.20 101.40 4.20 99.51 3.25 101.30 4.25 99.42 3.30 101.21 4.30 99.32 3.35 101.11 4.35 99.23 3.40 101.02 4.40 99.14 3.45 100.92 4.45 99.05 3.50 100.83 4.50 98.95 3.55 100.73 4.55 98.86 3.60 100.64 4.60 98.77 3.65 100.54 4.65 98.68 3.70 100.45 4.70 98.59 3.75 100.35 4.75 98.49 3.80 100.26 4.80 98.40 3.85 100.17 4.85 98.31 3.90 100.07 4.90 98.22 * 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 May 2007