For Immediate Release


Bank of East Asia launches second Retail Callable CD issue to meet overwhelming public demand

Hong Kong, 17 September 2002 – The Bank of East Asia (“BEA”) is pleased to announce that, following the overwhelming response it received from the public in early September for its initial issue of Hong Kong Dollar Retail Callable Certificates of Deposit (CDs), the Bank will launch a second issue of HKD Retail Callable CDs on Wednesday, 18 September.

The key terms and conditions for the new issue remain largely similar to those of the first run. The issue amount is limited to 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 CDs held at that time at par.

The interest rate for the Retail Callable CDs is set as 3.37% p.a. for the first two years, ie. from 3 October 2002 to 3 October 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 2 April 2007. Interest will be payable on a quarterly basis. The deposit date of the Retail Callable CDs is 3 October 2002, and the subscription period runs from 18 September to 12:00 noon on 30 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.

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For press enquiries, please contact:

Mr. Simon C.K. Lau
Head of Branch Distribution Department
The Bank of East Asia
Tel: 3407 2088










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 : RCD092002A
Issue Amount : Up to HK$200,000,000
Subscription Period : 18 September 2002 to 12:00 noon on 30 September 2002
Deposit Date : 3 October 2002
Maturity Date : (a) If the Call Option is exercised: 3 October 2004
(b) If the Call Option is not exercised: 3 April 2007
Issue Price : At par (100%)
Denomination : HK$100,000 per Certificate
Interest Rate : 3.37% p.a. from 3 October 2002 to 3 October 2004
4.00% p.a. from 4 October 2004 to 2 April 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.