Tender for the reopening of 5-Year Exchange Fund Notes to be held on Friday, 16 March 2007

Press Releases

07 Mar 2007

Tender for the reopening of 5-Year Exchange Fund Notes to be held on Friday, 16 March 2007

The Hong Kong Monetary Authority (HKMA) announces that the tender of Exchange Fund Notes with a maturity of 36 months through the reopening of existing 5-year Exchange Fund Notes (issue no. 5003) will be held on Friday, 16 March 2007 for settlement on Monday, 19 March 2007.

An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 5003) will be on offer. The Notes will mature on 22 March 2010 and carry interest at the rate of 3.52% per annum payable semi-annually in arrears. The Notes closed at 98.72 with an annualized yield of 4.02% on 5 March 2007.

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 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
7 March 2007

 

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

______________________________________________________

Tender information of the reopening of 5-Year Exchange Fund Notes :-

Issue Number           : 5003

Stock code             : 4135 (EFN 3.52 1003)

Tender Date            : Friday, 16 March 2007
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Monday, 19 March 2007
Date for tender amount

Amount on Offer        : HK$1,200 million
                         (solely for competitive
                          tender)

Maturity               : 36 months

Maturity Date          : 22 March 2010

Interest Rate          : 3.52% per annum payable
                         semi-annually in arrears

Interest Payment Dates : 21 Mar 2007
                         21 Sept 2007
                         21 Mar 2008
                         22 Sept 2008
                         23 Mar 2009
                         21 Sept 2009
                         22 Mar 2010

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 (19 Mar 2007)
                         for the tender amount is
                         HK$863.12 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 error).
                         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  : The tender amount is fully
date of dealing on       fungible with the existing
the Stock Exchange       EFN 5003 listed on the Stock
of Hong Kong             Exchange of Hong Kong 

 

Hong Kong Monetary Authority
7 March 2007

 
Price/Yield Table of the reopening of EFN at tender for reference* only :-

Yield-to-Maturity   Price   Yield-to-Maturity   Price

     3.02          101.49          4.02         98.70
     3.07          101.35          4.07         98.57
     3.12          101.21          4.12         98.43
     3.17          101.07          4.17         98.30
     3.22          100.93          4.22         98.16
     3.27          100.79          4.27         98.02
     3.32          100.65          4.32         97.89
     3.37          100.51          4.37         97.75
     3.42          100.37          4.42         97.62
     3.47          100.23          4.47         97.48
     3.52          100.09          4.52         97.35
     3.57           99.95          4.57         97.22
     3.62           99.81          4.62         97.08
     3.67           99.67          4.67         96.95
     3.72           99.53          4.72         96.81
     3.77           99.39          4.77         96.68
     3.82           99.25          4.82         96.55
     3.87           99.12          4.87         96.42
     3.92           98.98          4.92         96.28
     3.97           98.84          4.97         96.15
     4.02           98.70          5.02         96.02

* 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
7 March 2007
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Last revision date : 07 March 2007