XN000022-1995-10-31 — Page 13

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Tender for the second issue of MTRC Notes

The Hong Kong Monetary Authority (HKMA) announced today (Tuesday) that the tender for the second issue of Mass Transit Railway Corporation (MTRC) Notes will be held next Wednesday (November 8, 1995).

An amount of HK$500 million in MTRC Notes will be offered for tender next Wednesday for settlement on Thursday (November 9, 1995). The five-year Notes, which mature on November 9, 2000, will carry interest at the fixed rate of 7.30% per Terms and conditions of the issue are annum payable semi-annually in arrears. described fully in the Information Memorandum.

The HK$500-million MTRC Notes issue is the second tranche of the MTRC Note Issuance Programme in which HKMA acts as the arranger, custodian, agent and operator. The MTRC Notes, which are denominated in HK$50,000, will be cleared through the Central MoneyMarkets Unit (CMU) and will qualify as eligible securities for repo under the Liquidity Adjustment Facility operated by HKMA.

The Chief Executive of HKMA, Mr Joseph Yam, said: "I expect that the issue would be well received by the market, given the growing reputation of MTRC internationally and the good performance of the first issue of MTRC five-year Notes. The new issue will provide another choice of quality HK dollar debt instrument to investors."

When MTRC issued its first tranche of Notes in May 1995, the issue was met with strong demand and was 2.86 times over-subscribed.

"The spread between MTRC Notes and Exchange Fund Notes has since narrowed from 66 basis points to around 50 basis points," said Mr Roger Moss, the Finance Director of MTRC.

"We believe the second issue will help increase liquidity of our papers and maintain investors' interest."

MTRC will use the proceeds for general working capital, debt refinancing and other corporate requirements.

Members of the public who wish to tender for the Notes may do so through any of the Market Makers or Recognised Dealers on the published list which can be obtained from the Hong Kong Monetary Authority at 30th floor, 3 Garden Road, Hong Kong (or telephone 2878 8150). Each tender must be for an amount of HK$50,000 or integral multiples thereof.

End/Tuesday, October 31, 1995