Arrangers for offering of HKSAR gov't bonds appointed

Hong Kong Special Administrative Region government announced Friday that the Bank of China Group, Merrill Lynch and HSBC are to be the Arrangers and Joint Global Co-ordinators (JGCs) for the proposed offering of 20 billion HK dollars (2.56 billion US dollars) Government Bonds (the Offering).

According to a government press release, BOC Group, which consists of BOC International Holdings Limited (BOCI) and Bank of China (Hong Kong) Limited, and Merrill Lynch were originally selected following a competitive selection exercise. In discharging their responsibility in recommending a suitable syndicate, BOC Group and Merrill Lynch recommended that HSBC also be appointed as Arranger and JGC for the offering.

The three firms will assist the government in the preparation and execution of the offering. It is presently envisaged that the offering will be in three parts - Hong Kong dollar retail, Hong Kong dollar institutional and US dollar international.

Hong Kong Financial Secretary announced in the 2004-05 Budget Speech earlier this year that the government's intention to issue bonds of an amount not exceeding 20 billion (2.56 billion US dollars) within 2004-05 to provide funding for capital or other investment projects that will bring long-term economic benefits toHong Kong and to promote the development of the local bond markets.

On May 19, 2004, the Legislative Council passed a resolution authorizing the Government to issue such bonds.

The Bonds may not be offered or sold in the United States unless they are registered under applicable law or exempt from registration.

Source: Xinhua