Tender for the reopening of 5-Year Exchange Fund Notes to be held on March 16, 2012

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. 05Y1503) will be held on March 16,  2012 (Friday) for settlement on March 19, 2012 (Monday).

     An additional amount of HK$1,200 million of the outstanding 5-year Notes (issue no. 05Y1503) will be on offer, of which HK$5 million will be made available for offer to member 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 March 23, 2015 and carry interest at the rate of 1.75% per annum payable semi-annually in arrears.  The Notes Fixings on March 5, 2012 was 104.41 with an annualised yield of 0.30%.

     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.

Tender information of the reopening of 5-Year Exchange Fund Notes :

Issue Number           : 05Y1503

Stock code             : 4001 (EFN 1.75 1503)

Tender Date            : March 16, 2012 (Friday)
and Time                 9.30am to 10.30am

Issue and Settlement   : March 19, 2012 (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          : March 23, 2015

Interest Rate          : 1.75% per annum payable
                         semi-annually in arrears

Interest Payment Dates : March 22, 2012
                         September 24, 2012
                         March 22, 2013
                         September 23, 2013
                         March 24, 2014
                         September 22, 2014
                         March 23, 2015

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

                         The accrued interest to be
                         paid by successful bidders
                         on the issue date
                         (March 19, 2012) for the
                         tender amount is HK$429.11
                         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

Expected commencement  : The tender amount is fully
date of dealing on       fungible with the existing
the Stock Exchange       05Y1503 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-       Price      Yield-to-     Price
     Maturity                  Maturity  

     -0.70         107.42       0.30        104.35
     -0.65         107.26       0.35        104.19
     -0.60         107.11       0.40        104.04
     -0.55         106.95       0.45        103.89
     -0.50         106.79       0.50        103.73
     -0.45         106.64       0.55        103.58
     -0.40         106.48       0.60        103.43
     -0.35         106.33       0.65        103.28
     -0.30         106.17       0.70        103.13
     -0.25         106.02       0.75        102.98
     -0.20         105.86       0.80        102.83
     -0.15         105.71       0.85        102.68
     -0.10         105.56       0.90        102.53
     -0.05         105.40       0.95        102.38
      0.00         105.27       1.00        102.23
      0.05         105.12       1.05        102.08
      0.10         104.96       1.10        101.93
      0.15         104.81       1.15        101.78
      0.20         104.65       1.20        101.63
      0.25         104.50       1.25        101.49
      0.30         104.35       1.30        101.34

* 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, March 7, 2012
Issued at HKT 16:35