************************************************************
The following is issued on behalf of The Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announces that a tender of 2-year Exchange Fund Notes will be held on Tuesday, August 14, 2007 for settlement on Wednesday, August 15, 2007.
A total of HK$1,200 million 2-year Notes will be on offer, of which HK$200 million will be made available for offer to members of the public who wish to submit non-competitive tender bids through Retail Exchange Fund Notes Distributors (the "Distributors") under the Retail Exchange Fund Notes Programme, and 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$995 million). The Notes will mature on August 17, 2009 and will carry interest at the rate of 4.25% 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 the Distributors under the Retail Exchange Fund Notes Programme may do so through the Distributors. 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 Eligible Market Makers. While an applicant can apply for the Notes through both competitive and non-competitive tenders, an applicant may submit only one non-competitive tender application through the same Distributor under the Retail Exchange Fund Notes Programme. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender.
The current published list of Eligible Market Makers and Distributors 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.
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 the Distributors under the Retail Exchange Fund Notes Programme may obtain the tender results from the Distributors. For those who submitted through HKSCC may obtain the 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
August 2, 2007
HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
______________________________________________________
Tender information of 2-Year Exchange Fund Notes :-
Issue Number : 02Y0908
Stock code : 4168 (EFN 4.25 0908)
Tender Date : Tuesday, August 14, 2007
and Time 9.30am to 10.30am
Issue and Settlement : Wednesday, August 15, 2007
Date
Amount on Offer : HK$1,200 million
(up to HK$200 million for
non-competitive tenders
open to Retail Exchange
Fund Notes Distributors
under the Retail Exchange
Fund Notes Programme; and
up to HK$5 million for non
-competitive tenders open
to Hong Kong Securities
Clearing Company Limited)
Maturity : Two years
Maturity Date : August 17, 2009
Interest Rate : 4.25% p.a.
Commencement of : 9am, August 3, 2007
submission of non-
competitive tender bids
by retail investors
through Retail Exchange
Fund Notes Distributors
Deadline for : 2pm, August 10, 2007
submission of non-
competitive tender bids
by retail investors
through Retail Exchange
Fund Notes Distributors
Commencement of : Please refer to requirements
/Deadline for as set down by HKSCC
submission of non-
competitive tender
bids by retail
investors through
Hong Kong Securities
Clearing Company
Limited (HKSCC)
Interest Payment Dates : Feb 15, 2008
Aug 15, 2008
Feb 16, 2009
Aug 17, 2009
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
Retail Exchange Fund Notes
Distributors (the
"Distributors") under the
Retail Exchange Fund Notes
Programme may only do so
through the Distributors.
Members of the public who
wish to apply for the Notes
through non-competitive
tenders that are open to
Hong Kong Securities
Clearing Company Limited
(HKSCC) may do so through
the 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 only do so through
Eligible Market Makers on
the Current published list.
Other details : Please see Information
Memorandum published or
approach Eligible Market
Makers, Retail Exchange Fund
Notes Distributors, Hong
Kong Securities Clearing
Company Limited, or brokers
who are Exchange Participants
of the Stock Exchange of Hong
Kong
Expected commencement : August 16, 2007
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
3.25 101.98 4.25 100.08
3.30 101.88 4.30 99.99
3.35 101.79 4.35 99.90
3.40 101.69 4.40 99.80
3.45 101.60 4.45 99.71
3.50 101.50 4.50 99.62
3.55 101.41 4.55 99.53
3.60 101.31 4.60 99.43
3.65 101.22 4.65 99.34
3.70 101.12 4.70 99.25
3.75 101.03 4.75 99.16
3.80 100.93 4.80 99.06
3.85 100.84 4.85 98.97
3.90 100.74 4.90 98.88
3.95 100.65 4.95 98.79
4.00 100.55 5.00 98.70
4.05 100.46 5.05 98.61
4.10 100.37 5.10 98.51
4.15 100.27 5.15 98.42
4.20 100.18 5.20 98.33
4.25 100.08 5.25 98.24
* 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/Thursday, August 2, 2007
Issued at HKT 16:46
NNNN