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The Chief Executive in Council yesterday (March 30) approved the proposed introduction of a resolution made under the Loans Ordinance to the Legislative Council to authorise the proposed issuance of up to $20 billion worth of Government bonds in 2004-05.

A Government spokesman said that the issuance of Government bonds was intended to serve the purpose of financing infrastructure and other major investment projects that were of long-term benefit to Hong Kong. Funds to be received from the issuance would be credited into the Capital Works Reserve Fund to assist in financing the Public Works Programme.

"The issue can also increase flexibility in the implementation of the Government's asset sale and securitisation programmes, promote the development of the local bond market and provide an additional investment option for local investors," the spokesman said.

The issue is expected to involve a major domestic and global offer to both local and international retail and institutional investors. It is also likely to be denominated in Hong Kong dollar and/or foreign currencies and is likely to comprise bonds of different maturities.

The Government plans to move a motion to pass the resolution at the Legislative Council on May 5. Subject to passage through the Legislative Council, the resolution will be gazetted and take effect on May 7.

Ends/Wednesday, March 31, 2004

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