Tender for the re-opening of 10-Year Government Bonds under the Institutional Bond Issuance Programme to be held on January 16
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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 (January 9) that a tender of 10-year Government Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2108 under the Institutional Bond Issuance Programme will be held on January 16, 2012 (Monday), for settlement on January 17, 2012 (Tuesday).

     An additional amount of HK$1.5 billion of the outstanding 10-Year Bonds (issue no. 10GB2108) will be on offer.  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.  The Bonds Fixings on January 9, 2012 is 107.93 with an annualised yield of 1.572%.

     Under the Institutional Bond Issuance Programme, tender is open only to Recognised Dealers which are appointed as Primary Dealers.  Any tender applications for the Bonds must be submitted through a Primary Dealer 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 HKMA's website, 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 re-opening 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      : January 16, 2012
                            (Monday)
                            9.30am to 10.30am

Issue and Settlement Date : January 17, 2012
                            (Tuesday)

Amount on Offer           : HK$1.5 billion

Maturity                  : 10 years

Remaining Maturity        : Approximately 9.55 years

Maturity Date             : August 4, 2021

Interest Rate             : 2.46% p.a., payable
                            semi-annually in arrears

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.

                            The accrued interest to
                            be paid by successful
                            bidders on the issue date
                            (January 17, 2012) for
                            the tender amount is
                            HK$559.40 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).

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 date : The tender amount is
of dealing on the Stock      fully fungible with
Exchange of Hong Kong        the existing 10GB2108
Limited                      (Stock code: 4209)
                             listed on the Stock
                             Exchange of Hong Kong.

                             
Price/Yield Table of the re-opening Government Bonds at tender for reference* only:
        
Yield-to-  Price       Yield-to-       Price
Maturity             Maturity    
0.57       117.52        1.57          107.90
0.62       117.02        1.62          107.44
0.67       116.52        1.67          106.99
0.72       116.02        1.72          106.54
0.77       115.52        1.77          106.09
0.82       115.02        1.82          105.64
0.87       114.53        1.87          105.20
0.92       114.04        1.92          104.75
0.97       113.56        1.97          104.31
1.02       113.07        2.02          103.87
1.07       112.59        2.07          103.44
1.12       112.11        2.12          103.00
1.17       111.63        2.17          102.57
1.22       111.16        2.22          102.14
1.27       110.68        2.27          101.71
1.32       110.21        2.32          101.29
1.37       109.75        2.37          100.87
1.42       109.28        2.42          100.44
1.47       108.82        2.47          100.03
1.52       108.36        2.52           99.61
1.57       107.90        2.57           99.19


* 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, January 9, 2012
Issued at HKT 18:36

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