Tender for the Second Issue of 10-Year Exchange Fund Notes to be held on Monday, 27 January 1997

The Hong Kong Monetary Authority announces that the tender for the second issue of 10-year Exchange Fund Notes will be held on Monday, 27 January 1997 for settlement on Tuesday, 28 January 1997.

An amount of HK$500 million 10-year Notes will be offered. Another HK$100 million will be held as reserve by the Hong Kong Monetary Authority for supply to Market Makers in the secondary market. The Notes will mature on 29 January 2007 and will carry interest at the rate of 6.89% per annum payable semi-annually in arrears. Terms and conditions of the issue are described fully in the Information Memorandum.

Members of the public who wish to tender for the Notes may do so through any of the Market Makers or Recognized Dealers on the published list which can be obtained from the Hong Kong Monetary Authority at 30/F, 3 Garden Road, Hong Kong (or telephone 2878 8150). Each tender must be for an amount of HK$50,000 or integral multiples thereof.

Hong Kong Monetary Authority
20 January 1997

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

__________________________________________

Tender information for the second issue of 10-Year Exchange Fund Notes :-

Issue Number              : 1701

Tender Date and Time      : Monday 27 January 1997,
                            9:30 a.m. to 10:30 a.m.

Issue and Settlement Date : Tuesday 28 January 1997

Amount on Offer           : HK$500 million plus an
                            additional HK$100 million
                            as reserve stock for the
                            Monetary Authority

Maturity                  : Ten years

Maturity Date             : 29 January 2007

Interest Rate             : 6.89% per annum payable
                            semi annually in arrears

Interest Payment Dates    : 28 Jul 1997, 27 Jan 1998
                            28 Jul 1998, 28 Jan 1999
                            28 Jul 1999, 28 Jan 2000
                            28 Jul 2000, 29 Jan 2001
                            30 Jul 2001, 28 Jan 2002
                            29 Jul 2002, 28 Jan 2003
                            28 Jul 2003, 28 Jan 2004
                            28 Jul 2004, 28 Jan 2005
                            28 Jul 2005, 30 Jan 2006
                            28 Jul 2006, 29 Jan 2007

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
                            Recognized Dealers on the
                            published list

Other details             : Please see Information
                            Memorandum published or 
                            approach Market Makers or 
                            Recognized Dealers

Hong Kong Monetary Authority
20 January 1997