Tender of 10-Year Government Bonds under the Institutional Bond Issuance Programme to be held on August 3
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The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (July 25) that a tender of 10-Year Government Bonds (Bonds) under the Institutional Bond Issuance Programme will be held on Wednesday, August 3, 2011, for settlement on Thursday, August 4, 2011.

     A total of HK$2.5 billion 10-Year Bonds will be tendered. The Bonds will mature on August 4, 2021 and will carry interest at the rate of 2.46% per annum payable semi-annually in arrears.

     Under the Institutional Bond Issuance Programme, tender is open only to Recognised Dealers which are appointed as Primary Dealers. Anyone wishing to apply for the Bonds on offer can do so through any of the Primary Dealers on the current published list, which can be obtained from the Government Bond Programme's website at www.hkgb.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof.

     Tender results will be published on the Government Bond Programme's website, the Reuters screen (HKGBINDEX), and Bloomberg (GBHK <GO>) not later than 3pm on the tender day.

HKSAR Government Institutional Bond Issuance Programme Tender Information

Tender information of 10-Year Government Bonds under the Institutional Bond Issuance Programme:

Issue Number             :  10GB2108

Stock code               :  4209 (HKGB 2.46 2108)

Tender Date and Time     :  Wednesday, August 3, 2011
                            9.30am to 10.30am

Issue and Settlement Date:  Thursday, August 4, 2011

Amount on Offer          :  HK$2.5 billion

Maturity                 :  Ten years

Maturity Date            :  August 4, 2021

Interest Rate            :  2.46% p.a.

Interest Payment Dates   :  February 6, 2012
                            August 6, 2012
                            February 4, 2013
                            August 5, 2013
                            February 4, 2014
                            August 4, 2014
                            February 4, 2015
                            August 4, 2015
                            February 4, 2016
                            August 4, 2016
                            February 6, 2017
                            August 4, 2017
                            February 5, 2018
                            August 6, 2018
                            February 4, 2019
                            August 5, 2019
                            February 4, 2020
                            August 4, 2020
                            February 4, 2021
                            August 4, 2021

Method of Tender         :  Competitive tender

Tender Amount            :  Each competitive tender
                            must be for an amount of
                            HK$50,000 or integral
                            multiples thereof. Any
                            tender applications for
                            the Bonds must be
                            submitted through a
                            Primary Dealer on the
                            current published list.

Other details            :  Please see Information
                            Memorandum available on
                            the Government Bond
                            Programme's website at
                            www.hkgb.gov.hk or
                            approach Primary Dealers.

Expected commencement    :  August 5, 2011
date of dealing on
the Stock Exchange
of Hong Kong Limited

Price/Yield Table of the new Government Bonds at tender for reference* only :-
        
Yield-to-Maturity   Price   Yield-to-Maturity  Price

 1.46               109.32           2.46      100.13
 1.51               108.84           2.51       99.70
 1.56               108.36           2.56       99.26
 1.61               107.88           2.61       98.83
 1.66               107.41           2.66       98.41
 1.71               106.94           2.71       97.98
 1.76               106.47           2.76       97.55
 1.81               106.00           2.81       97.13
 1.86               105.53           2.86       96.71
 1.91               105.07           2.91       96.30
 1.96               104.61           2.96       95.88
 2.01               104.15           3.01       95.47
 2.06               103.69           3.06       95.06
 2.11               103.24           3.11       94.65
 2.16               102.79           3.16       94.24
 2.21               102.34           3.21       93.84
 2.26               101.89           3.26       93.43
 2.31               101.45           3.31       93.03
 2.36               101.01           3.36       92.63
 2.41               100.57           3.41       92.24
 2.46               100.13           3.46       91.84

* 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/Monday, July 25, 2011
Issued at HKT 17:16

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