Tender of 15-Year Exchange Fund Notes to be held on August 25
***********************************************************

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announces that a tender of 15-year Exchange Fund Notes will be held on August 25, 2011 (Thursday) for settlement on August 26, 2011 (Friday).

     A total of HK$600 million 15-year Notes will be on offer, of which 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$595 million). The Notes will mature on August 26, 2026 and will carry interest at the rate of 2.07% 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 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 the 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 submitted non-competitive tender bids through HKSCC may also obtain the tender results from Stock Exchange Participants/Brokers, or for applicants who hold Investor Accounts at HKSCC's CCASS from the CCASS terminal for CCASS Broker/Custodian/Participants and CCASS Phone System.

Hong Kong Monetary Authority
Exchange Fund Note Programme Tender Information
-----------------------------------------------------

Tender information of 15-Year Exchange Fund Notes :

Issue Number           : 15Y2608

Stock code             : 4018 (EFN 2.07 2608)

Tender Date            : August 25, 2011 (Thursday)
and Time                 9.30am to 10.30am

Issue and Settlement   : August 26, 2011 (Friday)
Date

Amount on Offer        : HK$600 million
                         (up to HK$5 million for
                          non-competitive tender)

Commencement of/       : Please refer to requirements
Deadline for             as set down by HKSCC
submission of non-
competitive tender bids
by retail investors
through HKSCC

Maturity               : Fifteen years

Maturity Date          : August 26, 2026

Interest Rate          : 2.07% p.a.

Interest Payment Dates : February 27, 2012
                         August 27, 2012
                         February 26, 2013
                         August 26, 2013
                         February 26, 2014
                         August 26, 2014
                         February 26, 2015
                         August 26, 2015
                         February 26, 2016
                         August 26, 2016
                         February 27, 2017
                         August 28, 2017
                         February 26, 2018
                         August 27, 2018
                         February 26, 2019
                         August 26, 2019
                         February 26, 2020
                         August 26, 2020
                         February 26, 2021
                         August 26, 2021
                         February 28, 2022
                         August 26, 2022
                         February 27, 2023
                         August 28, 2023
                         February 26, 2024
                         August 26, 2024
                         February 26, 2025
                         August 26, 2025
                         February 26, 2026
                         August 26, 2026

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 who
                        hold 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 any of the
                        Eligible Market Makers on
                        the current published list.

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 Kong

Expected commencement : August 29, 2011
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
    1.07           113.87        2.07         100.14
    1.12           113.13        2.12          99.50
    1.17           112.40        2.17          98.87
    1.22           111.67        2.22          98.25
    1.27           110.95        2.27          97.63
    1.32           110.24        2.32          97.01
    1.37           109.53        2.37          96.40
    1.42           108.82        2.42          95.80
    1.47           108.13        2.47          95.19
    1.52           107.43        2.52          94.60
    1.57           106.74        2.57          94.00
    1.62           106.06        2.62          93.42
    1.67           105.38        2.67          92.83
    1.72           104.71        2.72          92.25
    1.77           104.04        2.77          91.68
    1.82           103.38        2.82          91.10
    1.87           102.72        2.87          90.54
    1.92           102.07        2.92          89.97
    1.97           101.42        2.97          89.42
    2.02           100.77        3.02          88.86
    2.07           100.14        3.07          88.31

* 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/Tuesday, August 16, 2011
Issued at HKT 16:31

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