3 June 2003

KCRC announces subscription prices for retail bonds

The Kowloon-Canton Railway Corporation (KCRC) today announced that its five-year and 10-year retail bonds would be issued to retail investors at a price of 101.63% and 102.82% of the principal amount.

The five-year bonds carry a coupon rate of 3% and the 10-year bonds 4.8%. The effective annualised yields of the five-year and 10-year bonds are 2.67% and 4.50% respectively.

The subscription prices were determined by reference to the annualised yield of the specified Exchange Note Funds at or around 4:30pm today plus a specified margin.

KCRC has earlier decided to double the size of the issue from $500 million to $1 billion, of which $300 million has a tenor of five years and $700 million 10-years.

The bonds, which will be issued on Friday (6 June 2003), will be allocated according to conditions set out in the Offering Memorandum.

The subscription prices, the issue amounts and the principal amounts of valid applications have also been posted on KCRC’s website (www.kcrc.com)

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