The Hong Kong Mortgage Corporation Ltd (HKMC) launched a new retail bond issue yesterday with four series of notes that are open for subscription through June 13.

HKMC is the most active Hong Kong dollar corporate debt issuer. It said the retail bonds under its HK$20 billion Retail Bond Issuance Program provide investors with the choice of an additional investment.

The issue includes a series of Hong Kong dollar notes of two-year maturity; and two series of Hong Kong dollar notes of five-year and seven-year maturity, extendible quarterly until June 2013 and June 2015, respectively.

HKMC is also offering a series of one-year Australian-dollar notes for the first time.

The minimum issue amount is HK$1 million for each Hong Kong dollar note and AU$1 million ($957,400) for every Australian dollar note.

HSBC, the guarantee bank, has agreed to underwrite HK$300 million in respect of the two-year Hong Kong dollar notes issued.

At a press conference yesterday, HKMC Chief Executive Officer James Lau said: "HKMC retail bonds provide investors with the choice of an additional investment product to achieve a balanced investment portfolio and stable interest income".

HKMC, wholly owned by the Hong Kong Monetary Authority, has issued 10 retail bond issues totaling HK$13 billion since 2001 - when the offering mechanism through designating banks was first introduced.

The firm decided to launch Australian dollar bonds based on the currency's fast-growing market demand over the last few years.

"The number of Australian dollar deposits has seen a big jump over the last several years, which inspires us to issue bonds with the currency," Lau said.

The HKMC has appointed 17 banks to distribute the issue to retail investors.

They are Bank of China (Hong Kong), Bank of Communications Hong Kong Branch, Bank of East Asia, China Construction Bank (Asia), Chiyu Bank, Chong Hing Bank, CITIC Ka Wah Bank, Dah Sing Bank, DBS Bank (Hong Kong), Hang Seng Bank, HSBC, ICBC (Asia), Nanyang Commercial Bank, Shanghai Commercial Bank, Standard Chartered Bank (Hong Kong), Wing Hang Bank and Wing Lung Bank.

(HK Edition 06/04/2008 page2)