For Immediate Release


Bank of East Asia Rolls out Retail Callable CDs

Hong Kong, 3 September 2002 – The Bank of East Asia, Limited (“BEA”) today announced the availability of a new issue of Hong Kong Dollar Retail Callable Certificates of Deposit (CDs), the first ever issue of retail CDs by BEA. The issue amount of the Retail Callable CDs is capped at HK$200 million, with each Certificate denominated at HK$100,000. The investment period for the issue will be 4.5 years. BEA will retain the right to exercise a Call Option after two years, and may redeem all of the CDs of the Certificate-holders at par at that time.

In light of the prevailing low interest rates, investors and depositors are demanding more sophisticated investment instruments, able to offer steady returns at higher rates than conventional time deposit or savings products. BEA’s launch of the new issue aims to meet this demand, providing an alternative investment product that offers higher returns while safeguarding principal.

The interest rate for the Retail Callable CDs is set as 3.37% p.a. for the first two years, ie. from 18 September 2002 to 18 September 2004. If the Call Option is not exercised, Certificate-holders will enjoy an interest rate of 4.00% p.a. for the remaining 2.5 years up to 18 March 2007. Interest will be payable every three months. The deposit date of the new Retail Callable CDs is 18 September 2002, and the subscription period runs from 4 September to 12:00 noon of 16 September 2002 (please see the attached table).

Investors who desire additional flexibility may sell the Retail Callable CDs that they hold to BEA prior to the maturity date. They may also pledge the CDs as collateral to obtain a credit facility from the Bank.

Retail investors who are interested in subscribing to the Retail Callable CDs may obtain the Term Sheet and make application at any BEA branch. Interested parties may also call BEA’s Customer Service Hotline on 2211 1333 for further details.

For enquiries, please contact:
Mr Yeung Kin Chuen
Senior Manager, Branch Distribution Department
The Bank of East Asia
Tel: 2912 1718

 

 

 

The Bank of East Asia

Issuance of Hong Kong Dollar Retail Callable Certificates of Deposit


The key terms and conditions of the Retail Callable Certificates of Deposit are as follows:

Issuer : The Bank of East Asia, Limited
Issue Reference : RCD092002
Issue Amount : Up to HK$200,000,000
Subscription Period : 4 September 2002 to 12:00 noon on 16 September 2002
Deposit Date : 18 September 2002
Maturity Date : (a) If the Call Option is exercised: 18 September 2004
(b) If the Call Option is not exercised: 18 March 2007
Issue Price : At par (100%)
Denominations : HK$100,000 per Certificate
Interest Rate : 3.37% p.a. from 18 September 2002 to 18 September 2004
4.00% p.a. from 19 September 2004 to 18 March 2007
Interest Period : Quarterly
Subscription Fee : 0.15% flat on the principal amount
Custodian Fee : 0.025% on the nominal amount of the Retail Callable Certificates of Deposit; collectible semi-annually

Retail investors who are interested in subscribing for the Retail Callable Certificates of Deposit may obtain the Term Sheet and make application at any BEA branch. For further details, please call the BEA Customer Service Hotline on 2211 1333.