The Hong Kong Monetary Authority (HKMA) announced today (Tuesday) that the tender of Exchange Fund Notes with a maturity of 38 months through the reopening of existing 5-year Exchange Fund Notes (issue no. 5703) will be held on Friday 9 January 2004 for settlement on Monday 12 January 2004.
An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 5703) will be on offer, of which HK$120 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$1,080 million). The Notes will mature on 19 March 2007 and will carry interest at the rate of 5.16% per annum payable semi-annually in arrears. The Notes closed at 109.31 with an annualised yield of 2.162% on 29 December 2003.
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 the Hong Kong Securities Clearing Company Limited (HKSCC) or, for those who hold Investor Accounts at the HKSCC, direct through the HKSCC. The HKSCC will collect tender applications from its participants and submit them to the HKMA for processing. While an applicant may apply for the Notes through both competitive and non-competitive tenders, an applicant may submit only one non-competitive tender application through a 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 tenders.
The list of Market Makers or Recognised Dealers (including Retail Exchange Fund Notes Distributors) may 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.
Successful bidders of the reopened issue will be required to pay to the HKMA the respective bid price plus an amount equal to the interest accrued from the last coupon payment date to the allotment date of the reopened issue.
The tender results will be published on the HKMA's website, the Reuters screen (HKMAOOE), Bloomberg, the Telerate screen (9913), the Bridge News screen and the CCASS terminal for CCASS Broker/Custodian/Participants. CCASS Investor Participants may 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.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Kevin Ip, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
30 December 2003
HONG KONG MONETARY AUTHORITY EXCHANGE FUND NOTE PROGRAMME TENDER INFORMATION
Tender information of the reopening of 5-Year Exchange Fund Notes :-
Issue Number : 5703 Stock code : 4093 (EFN 5.16 0703) Tender Date : Friday, 9 January 2004 and Time 9:30 a.m. to 10:30 a.m. Issue and Settlement : Monday, 12 January 2004 Date Amount on Offer : HK$1,200 million (up to HK$120 million for non-competitive tender) Maturity : 38 months Maturity Date : 19 March 2007 Interest Rate : 5.16% per annum payable semi-annually in arrears Commencement of : 9:00 a.m., 30 December 2003 submission of non- competitive tender bids by retail investors Deadline for : 12:00 noon, 7 January 2004 submission of non- competitive tender by retail investors Interest Payment Dates : 18 Mar 2004 20 Sep 2004 18 Mar 2005 19 Sep 2005 20 Mar 2006 18 Sep 2006 19 Mar 2007
Tender Amount : Each tender must be for an amount of HK$50,000 or integral multiples thereof. The accrued interest to be paid by successful bidders on the issue date (12 January 2004) for the tender amount is HK$819.95 per minimum denomination of HK$50,000. (The accrued interest to be paid for tender amount exceeding HK$50,000 may not be exactly equal to the figures calculated from the accrued interest per minimum denomination of HK$50,000, due to rounding errors). 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 : The tender amount is fully date of dealing on fungible with the existing the Stock Exchange EFN 5703 listed on the Stock of Hong Kong Exchange of Hong Kong
Price/Yield Conversion Table of EFN 5703 at tender for reference* only :
Yield-to-Maturity Price Yield-to-Maturity Price 1.16 112.48 2.16 109.22 1.21 112.32 2.21 109.06 1.26 112.15 2.26 108.90 1.31 111.98 2.31 108.74 1.36 111.82 2.36 108.58 1.41 111.65 2.41 108.42 1.46 111.49 2.46 108.27 1.51 111.32 2.51 108.11 1.56 111.16 2.56 107.95 1.61 111.00 2.61 107.79 1.66 110.83 2.66 107.64 1.71 110.67 2.71 107.48 1.76 110.51 2.76 107.32 1.81 110.35 2.81 107.17 1.86 110.18 2.86 107.01 1.91 110.02 2.91 106.86 1.96 109.86 2.96 106.70 2.01 109.70 3.01 106.55 2.06 109.54 3.06 106.39 2.11 109.38 3.11 106.24 2.16 109.22 3.16 106.09 *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 30 December 2003