Tender of 15-Year Exchange Fund Notes to be held on Tuesday, 26 August 2008

The Hong Kong Monetary Authority (HKMA) announces that a tender of 15-year Exchange Fund Notes will be held on Tuesday 26 August 2008 for settlement on Wednesday 27 August 2008. 

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 28 August 2023 and will carry interest at the rate of 3.27% 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 http://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
15 August 2008

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
______________________________________________________

Tender information of 15-Year Exchange Fund Notes :- 

Issue Number           : 15Y2308 

Stock code             : 4181 (EFN 3.27 2308) 
Tender Date            : Tuesday, 26 August 2008
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Wednesday, 27 August 2008
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          : 28 August 2023

Interest Rate          : 3.27% p.a.

Interest Payment Dates : 27 Feb 2009
                         27 Aug 2009
                          1 Mar 2010
                         27 Aug 2010
                         28 Feb 2011
                         29 Aug 2011
                         27 Feb 2012
                         27 Aug 2012
                         27 Feb 2013
                         27 Aug 2013
                         27 Feb 2014
                         27 Aug 2014
                         27 Feb 2015
                         27 Aug 2015
                         29 Feb 2016
                         29 Aug 2016
                         27 Feb 2017
                         28 Aug 2017
                         27 Feb 2018
                         27 Aug 2018
                         27 Feb 2019
                         27 Aug 2019
                         27 Feb 2020
                         27 Aug 2020
                          1 Mar 2021
                         27 Aug 2021
                         28 Feb 2022
                         29 Aug 2022
                         27 Feb 2023
                         28 Aug 2023

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  : 28 August 2008
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

      2.27                 112.83        3.27       100.31

      2.32                 112.16        3.32        99.73

      2.37                 111.49        3.37        99.15

      2.42                 110.83        3.42        98.58

      2.47                 110.18        3.47        98.02

      2.52                 109.53        3.52        97.45

      2.57                 108.88        3.57        96.89

      2.62                 108.24        3.62        96.34

      2.67                 107.60        3.67        95.79

      2.72                 106.97        3.72        95.24

      2.77                 106.34        3.77        94.69

      2.82                 105.72        3.82        94.15

      2.87                 105.10        3.87        93.62

      2.92                 104.49        3.92        93.09

      2.97                 103.88        3.97        92.56

      3.02                 103.27        4.02        92.03

      3.07                 102.67        4.07        91.51

      3.12                 102.08        4.12        90.99

      3.17                 101.48        4.17        90.48

      3.22                 100.89        4.22        89.97

      3.27                 100.31        4.27        89.46

* 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
15 August 2008