The Hong Kong Monetary Authority (HKMA) announced today the tender for the inaugural issue of the Airport Authority (AA) Notes to be held on 20 May 1998 (Wednesday).
An amount of HK$500 million in AA Notes will be offered for settlement on Thursday 21 May 1998. The 5-year Notes, which mature on 21 May 2003, will carry interest at the fixed rate of 8.50% per annum payable semi-annually in arrears. Terms and conditions of the issue are described fully in the Information Memorandum.
The HK$500 million AA Notes issue is the first tranche of the HK$5 billion AA Note Issuance Programme in which the HKMA acts as the arranger, custodian, agent and operator. The AA Notes, which are denominated in HK$50,000, will be cleared through the Central Moneymarkets unit (CMU) and will qualify as eligible securities for repo under the Liquidity Adjustment Facility operated by the HKMA.
The AA Notes will be covered by the existing market-making arrangements for the Exchange Fund Bills and Notes. Under the Programme, the AA Notes will be sold from time to time by tender to a group of Market Makers and Recognized Dealers appointed by the HKMA.
Under the short selling arrangement, Market Makers of Exchange Fund, MTRC, HKMC and AA papers can go short in any issues of such papers provided they hold sufficient amount of other Exchange Fund, MTRC, HKMC or AA papers in the system to cover their short positions by entering into a repo transaction with the HKMA at the end of the day. In return the market makers are obliged to quote two-way (bid-ask) prices during normal money market hours.
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 HKMA 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
14 May 1998
AIRPORT AUTHORITY
NOTE ISSUANCE PROGRAMME
TENDER INFORMATION
___________________________________
Tender information for the first issue of Airport Authority Issuance Programme :
| Issue Number |
: |
A501 |
| Tender Date and Time |
: |
Wednesday 20 May 1998
9:30 a.m. to 10:30 a.m. |
| Issue and Settlement Date |
: |
Thursday 21 May 1998 |
| Amount on Offer |
: |
HK$500 million |
| Maturity |
: |
Five years |
| Maturity Date |
: |
21 May 2003 |
| Interest Rate |
: |
8.5 per cent. per annum |
| Interest Payment Dates |
: |
23 November 1998
22 November 1999
21 November 2000
21 November 2001
21 November 2002 |
21 May 1999
22 May 2000
21 May 2001
21 May 2002
21 May 2003 |
| 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
14 May 1998
