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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Mortgage Corporation Limited (HKMC) is pleased to announce today (June 3) the launch of a new retail bond issue with four series of notes (the ¡§Issue¡¨) under the HK$20 Billion Retail Bond Issuance Programme (the ¡§Programme¡¨).
The coupons and subscription prices of the notes are as follows, and the terms and conditions are highlighted in Annex A.
Series Currency Tenor Coupon Subscription
Price
------ -------- ----- ------ ------------
A HKD 2 years 2.50% 100%
(payable
semi-annually)
B1 HKD 1 year 4.00% times 100%
(extendable an Interest
quarterly Factor *
until (payable
June 2013) quarterly)
B2 HKD 1 year 5.00% times 100%
(extendable an Interest
quarterly Factor *
until (payable
June 2015) quarterly)
C AUD 1 year 7.15% 100%
(payable
semi-annually)
* Interest factor is equal to the actual number of days on which 3-month HIBOR falls within the range of 0% ¡V 5% p.a. divided by the actual number of days in the relevant period.
The HKMC today signed an agreement with the Underwriting Bank, HSBC for an underwriting amount of HK$300 million in respect of the 2-year Hong Kong dollar notes of the Issue.
Under the Programme, the HKMC has appointed 17 banks from the Dealer Group as Placing Banks to distribute the Issue to retail investors. They are Bank of China (Hong Kong), Bank of Communications Hong Kong Branch, Bank of East Asia, China Construction Bank (Asia), Chiyu Bank, Chong Hing Bank, CITIC Ka Wah Bank, Dah Sing Bank, DBS Bank (Hong Kong), Hang Seng Bank, HSBC, ICBC (Asia), Nanyang Commercial Bank, Shanghai Commercial Bank, Standard Chartered Bank (Hong Kong), Wing Hang Bank and Wing Lung Bank.
The 17 Placing Banks will also perform the role of market makers for the Issue to facilitate transactions in the secondary market. This offering mechanism through Placing Banks was first introduced by the HKMC in 2001 and has proven highly effective in marketing bonds to retail investors. So far, the HKMC has issued 10 retail bond issues totalling HK$13 billion. HKMC retail bonds provide investors with the choice of an additional investment product to achieve a balanced investment portfolio and stable interest income.
Mr James H. Lau Jr., Chief Executive Officer of the HKMC, said, ¡§Today, we are launching a new retail bond issue under the HKMC Retail Bond Programme, which caters for investors who prefer stable interest income and also for more experienced investors who look for yield enhancement and portfolio diversification. I trust the HKMC¡¦s consistent efforts to promote the development of the retail bond market will create a win-win situation for the investors, the placing banks and the Corporation.¡¨
The offer period will commence at 9am on June 4, 2008 (Wednesday) and end at 2pm on June 13, 2008 (Friday). The timetable for the issue is set out in Annex B. As applicants need to have a bank account and an investment account with any one of the Placing Banks whom they intend to instruct, they are encouraged to submit applications early and not to wait until the closing date of the offer period. The subscription money will only be deducted from the applicant¡¦s account on the closing date.
Retail investors can obtain the Programme Prospectus and the Issue Prospectus from any of the designated branches of the 17 Placing Banks (Annex C) or the office of the HKMC. Investors may also access the website of the HKMC (www.hkmc.com.hk) for details of the Issue.
Ends/Tuesday, June 3, 2008
Issued at HKT 16:30
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