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Tender for the reopening of 5-Year Exchange Fund Notesto be held on September 26
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The following is issued on behalf of the Hong Kong Monetary Authority:

     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. 05Y1709) will be held on September 26 (Friday) for settlement on September 29 (Monday).

     An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 05Y1709) 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 Notes reserved for non-competitive tender are under-subscribed, the non-subscribed amount will be added to the portion of notes for competitive tender (initially set at HK$1,195 million). The Notes will mature on September 18, 2017 and carry interest at the rate of 0.25% per annum payable semi-annually in arrears. The Notes Fixings on September 15, 2014 was 98.05 with an annualized yield of 0.91%.

     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 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 submit non-competitive tender bids through HKSCC may also obtain the tender results from Stock Exchange Participants/Brokers, or for applicants holding 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
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Tender information of the reopening of 5-Year Exchange Fund Notes :


Issue Number           : 05Y1709

Stock code             : 4031 (EFN 0.25 1709)

Tender Date            : September 26, 2014 (Friday)
and Time                 9.30am to 10.30am

Issue and Settlement   : September 29, 2014 (Monday)
Date for tender amount

Amount on Offer        : HK$1,200 million
                         (up to HK$5 million for non-
                          competitive tender)

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

Maturity               : 36 months

Maturity Date          : September 18, 2017

Interest Rate          : 0.25% per annum

Interest Payment Dates : March 17, 2015
                         September 17, 2015
                         March 17, 2016
                         September 19, 2016
                         Mar 17, 2017
                         September 18, 2017

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
                         holding Investor Accounts at
                         HKSCC's CCASS, directly
                         through HKSCC. Members of
                         the public who wish to apply
                         for the Notes through
                         competitive tender may do so
                         through any of the Eligible
                         Market Makers on the current
                         published list.

                         The accrued interest to be
                         paid by successful bidders
                         on the issue date (September
                         29, 2014) for the tender
                         amount is HK$4.11 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).

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  : The tender amount is fully
date of dealing on       fungible with the existing
the Stock Exchange       05Y1709 listed on the Stock
of Hong Kong             Exchange of Hong Kong



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

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

     -0.09        101.01        0.91         98.08
     -0.04        100.86        0.96         97.93
      0.01        100.71        1.01         97.79
      0.06        100.56        1.06         97.65
      0.11        100.41        1.11         97.51
      0.16        100.27        1.16         97.36
      0.21        100.12        1.21         97.22
      0.26         99.97        1.26         97.08
      0.31         99.82        1.31         96.94
      0.36         99.68        1.36         96.80
      0.41         99.53        1.41         96.65
      0.46         99.38        1.46         96.51
      0.51         99.24        1.51         96.37
      0.56         99.09        1.56         96.23
      0.61         98.95        1.61         96.09
      0.66         98.80        1.66         95.95
      0.71         98.66        1.71         95.81
      0.76         98.51        1.76         95.67
      0.81         98.37        1.81         95.54
      0.86         98.22        1.86         95.40
      0.91         98.08        1.91         95.26


* 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/Wednesday, September 17, 2014
Issued at HKT 17:22

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