XN000022-1997-01-20 — Page 7

Tender for second issue of 10-year Exchange Fund notes

The Hong Kong Monetary Authority announced today (Monday) that the tender for the second issue of 10-year Exchange Fund notes will be held next Monday (January 27) for settlement on Tuesday (January 28).

An amount of HK$500 million 10-year notes will be offered. Another HK$100 million will be held as reserve by the Hong Kong Monetary Authority for supply to market makers in the secondary market.

The notes will mature on January 29, 2007 and will carry interest at the rate of 6.89% per annum payable semi-annually in arrears. Terms and conditions of the issue are described fully in the Information Memorandum.

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, 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.

Issue number

Tender date and time

Tender information for the second issue of

Issue and settlement date

Amount on offer

Maturity

Maturity date

Interest rate

10-Year Exchange Fund notes

: 1701

:Monday, 27 January 1997,

9.30 am to 10.30 am

:Tuesday, 28 January 1997

: HK$500 million plus an additional HK$100 million as

reserve stock for the Monetary Authority

: Ten years

: 29 January 2007

: 6.89% per annum payable semi annually in arrears