XN000022-1975-11-24 — Page 6

MONDAY, HOVE, IBER

1975

- 5.

RESULT OF GOVERNMENT BONDS ISSUE SATIFACTORI

X X X X X X X

DIDS FOR BONDS TO A TOTAL NOMINAL VALUE OF $451 MILLION WERE RECEIVED IN RESPONSE TO THE INVITATION TO TENDER FOR THE GOVERNMENT'S $250 MILLION BOND ISSUE. TENDERS OPENED AT 10 A.M. TODAY AND CLOSED AT 1 P.M.

A GOVERNMENT SPOKESMAN SAID THAT TENDER PRICES RANGED FROM $90 PER $100 (THE MINIMUM PRICE) TO $105 PER $100.

THE ISSUE PRICE WAS FIXED AT $99 PER $100 AND APPLICATIONS AT PRICES ABOVE $99 PER $100 TOTALLING $219,500,000 WILL BE ALLOTED

IN FULL,

APPLICATIONS TOTALLING $36,200,000 WERE MADE AT THE ISSUE PRICE OF $S PER $100. AS ONLY $30,500,000 WORTH OF BONDS REMAINED AVAILABLE ALLOTMENTS WILL BE MADE ON A SCALED DOWN BASIS AS FOLLOWS:

AMOUNTS APPLIED FOR

AMOUNT ALLOTED

$2,000,000 AND BELOW

IN FULL

$3,000,000

$5,000,000

$2,500,000

$4,000,000

$10,000,000

$7,900,000

COMMENTING ON THE OUTCOME OF THIS FIRST GOVERNMENT BOND ISSUE SINCE 1948, THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE, SAID THIS EVENING THAT HE WAS VERY SATISFIED INDEED WITH THE WAY IN WHICH THE MARKET HAD RESPONDED BOTH AS REGARDS THE VOLUME OF APPLICATIONS AND THE ISSUE PRICE.

AT AN ISSUE PRICE OF $99 PER $100 THE MATURITY YIELD IS 6.85 PER CENT (FREE OF TAX). +1, REGARD THIS AS A FAIR PRICE AT WHICH TO BORROW ON THE HONG KONG MARKET.+ THE FINANCIAL SECRETARY ADDED, AND IT IS VERY CLOSE TO THE PRICE WE THOUGHT WE WOULD HAVE TO PAY FOR 5-YEAR MONEY WHEN WE WERE PLANNING THE ISSUE+. "

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