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Tender of 15-Year Exchange Fund Notes to be held on Thursday, February 24, 2011
****************************************************

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announces that a tender of 15-year Exchange Fund Notes will be held on February 24, 2011 (Thursday) for settlement on February 25, 2011 (Friday).

     A total of HK$600 million 15-year Notes will be on offer, of which HK$5 million will be made available for offer to members of the public who wish to submit non-competitive tender bids through Hong Kong Securities Clearing Company Limited (HKSCC). 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$595 million). The Notes will mature on February 25, 2026 and will carry interest at the rate of 3.32% per annum payable semi-annually in arrears.

     Members of the public who wish to submit non-competitive tender applications for Notes that are open to HKSCC may do so through Stock Exchange Participants/Brokers, or for those who hold Investor Accounts of the Central Clearing and Settlement System (CCASS) at the HKSCC, directly through HKSCC, for submission to the HKMA for processing. Competitive tender applications for the Notes must be submitted through any of the Eligible Market Makers on the current 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 www.hkma.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender.

     The tender results will be published on the HKMA's website, the Reuters screen (HKMAOOE), and Bloomberg. Applicants who submitted non-competitive tender bids through HKSCC may also obtain the tender results from Stock Exchange Participants/Brokers, or for applicants who hold Investor Accounts at HKSCC's CCASS from the CCASS terminal for CCASS Broker/Custodian/Participants and CCASS Phone System.

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
____________________________________________________
Tender information of 15-Year Exchange Fund Notes :-

Issue Number           : 15Y2602

Stock code             : 4012 (EFN 3.32 2602)

Tender Date            : February 24, 2011 (Thursday)
and Time                 9.30am to 10.30am

Issue and Settlement   : February 25, 2011 (Friday)
Date

Amount on Offer        : HK$600 million
                         (up to HK$5 million for
                          non-competitive tender)

Commencement of/       : Please refer to requirements
Deadline for             as set down by HKSCC
submission of non-
competitive tender bids
by retail investors
through HKSCC

Maturity               : Fifteen years

Maturity Date          : February 25, 2026

Interest Rate          : 3.32% p.a.

Interest Payment Dates : August 25, 2011
                         February 27, 2012
                         August 27, 2012
                         February 25, 2013
                         August 26, 2013
                         February 25, 2014
                         August 25, 2014
                         February 25, 2015
                         August 25, 2015
                         February 25, 2016
                         August 25, 2016
                         February 27, 2017
                         August 25, 2017
                         February 26, 2018
                         August 27, 2018
                         February 25, 2019
                         August 26, 2019
                         February 25, 2020
                         August 25, 2020
                         February 25, 2021
                         August 25, 2021
                         February 25, 2022
                         August 25, 2022
                         February 27, 2023
                         August 25, 2023
                         February 26, 2024
                         August 26, 2024
                         February 25, 2025
                         August 25, 2025
                         February 25, 2026

Tender Amount          : Each tender must be for an
                         amount of HK$50,000 or
                         integral multiples thereof
                         for both competitive and non
                         -competitive tender. Members
                         of the public who wish to
                         apply for the Notes through
                         non-competitive tenders that
                         are open to HKSCC may do so
                         through Stock Exchange
                         Participants/Brokers, or for
                         those who hold Investor
                         Accounts at HKSCC¡¦s CCASS,
                         directly through HKSCC.
                         Members of the public who
                         wish to apply for the Notes
                         through competitive tender
                         may only do so through any
                         of the Eligible Market
                         Makers on the current
                         published list.

Other details          : Please see Information
                         Memorandum published or
                         approach Eligible Market
                         Makers, HKSCC, or brokers
                         who are Exchange
                         Participants of the Stock
                         Exchange of Hong Kong

Expected commencement  : February 28, 2011
date of dealing on
the Stock Exchange
of Hong Kong
 
Price/Yield Table of the new EFN at tender for reference* only :-

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

     2.32         112.79         3.32          100.32
     2.37         112.12         3.37           99.74
     2.42         111.46         3.42           99.17
     2.47         110.80         3.47           98.60
     2.52         110.15         3.52           98.03
     2.57         109.50         3.57           97.47
     2.62         108.86         3.62           96.91
     2.67         108.22         3.67           96.36
     2.72         107.58         3.72           95.81
     2.77         106.95         3.77           95.27
     2.82         106.33         3.82           94.72
     2.87         105.71         3.87           94.19
     2.92         105.09         3.92           93.65
     2.97         104.48         3.97           93.12
     3.02         103.87         4.02           92.59
     3.07         103.27         4.07           92.07
     3.12         102.67         4.12           91.55
     3.17         102.08         4.17           91.04
     3.22         101.49         4.22           90.53
     3.27         100.90         4.27           90.02
     3.32         100.32         4.32           89.51


* 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.

Ends/Tuesday, February 15, 2011
Issued at HKT 17:15

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