Tender for re-opening of 5-year Government Bonds under Institutional Bond Issuance Programme to be held on September 3

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 (August 25) that a tender of 2-year Government Bonds (Bonds) through the re-opening of existing 5-year Government Bond issue 05GB1612 under the Institutional Bond Issuance Programme will be held on September 3 (Wednesday), for settlement on September 4 (Thursday).

     An additional amount of HK$3.5 billion of the outstanding 5-year Bonds (issue no. 05GB1612) will be on offer. The Bonds will mature on December 8, 2016 and will carry interest at the rate of 0.97% per annum payable semi-annually in arrears. The Bonds Fixings on August 25, 2014 is 100.91 with an annualised yield of 0.571%.

     Under the Institutional Bond Issuance Programme, tender is open only to Recognized 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 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 5-year Government Bonds under the Institutional Bond Issuance Programme:

Issue Number          : 05GB1612 (Re-open)

Stock code            : 4211 (HKGB 0.97 1612)

Tender Date and Time  : September 3, 2014 (Wednesday)
                        9.30am to 10.30am

Issue and Settlement  : September 4, 2014 (Thursday)
Date for tender

Amount on Offer       : HK$3.5 billion

Maturity              : 2 years

Remaining Maturity    : Approximately 2.26 years

Maturity Date         : December 8, 2016

Interest Rate         : 0.97% p.a. payable
                        semi-annually in arrears

Interest Payment Dates: December 8, 2014
                        June 8, 2015
                        December 8, 2015
                        June 8, 2016
                        December 8, 2016

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
                        (September 4, 2014) for
                        the tender amount is
                        HK$115.60 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

Expected commencement : The tender amount is fully
date of dealing on      fungible with the existing
the Stock Exchange      05GB1612 (Stock code: 4211)
of Hong Kong Limited    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

 -0.429        103.18     0.571        100.90
 -0.379        103.07     0.621        100.78
 -0.329        102.95     0.671        100.67
 -0.279        102.84     0.721        100.56
 -0.229        102.72     0.771        100.45
 -0.179        102.61     0.821        100.34
 -0.129        102.49     0.871        100.23
 -0.079        102.38     0.921        100.11
 -0.029        102.26     0.971        100.00
  0.021        102.15     1.021         99.89
  0.071        102.03     1.071         99.78
  0.121        101.92     1.121         99.67
  0.171        101.80     1.171         99.56
  0.221        101.69     1.221         99.45
  0.271        101.58     1.271         99.34
  0.321        101.46     1.321         99.23
  0.371        101.35     1.371         99.12
  0.421        101.24     1.421         99.01
  0.471        101.12     1.471         98.90
  0.521        101.01     1.521         98.79
  0.571        100.90     1.571         98.68

* 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, August 25, 2014
Issued at HKT 17:37