The issue of the Mortgage Corporation's retail bonds under the $20 billion Retail Bond Issuance Programme has obtained satisfactory subscriptions, with applications amounting to $625 million.

The subscription has exceeded the minimum issue amount of $100 million and US$10 million for the two series of Hong Kong and US dollar notes.

Chief Executive Officer James Lau said all valid applications will be accepted, adding the retail bond market will continue to be one of the corporation's major funding sources and opportunities to issue retail bonds to meet retail investors' needs will be explored.

HK dollar one-year notes (HKMC102), HK dollar three-year notes (HKMC311) and US dollar one-year notes (HKMC103) carry coupons of 3%, 3.5% and 3.1%. The US dollar one-year extendable notes (HKMC312E), which are extendable for another year, carry coupons of 3.1% for the first year, 3.5% for the second year and 4% for the third. Interest for all four series is payable semi-annually.

Application amount details are:

* HKD one-year notes (HKMC102) - $177.7 million

* HKD three-year notes (HKMC311) - $306 million

* USD one-year notes (HKMC103) - US$10.7 million

* USD one-year extendable notes (HKMC312E) - US$7.5 million

Prices for the two series of HK dollar notes will be fixed on July 28 by reference to the relevant Exchange Fund Bill or Exchange Fund Note as specified in the Issue Prospectus.

Each of the two US dollar notes was offered at a price of 100% of the principal amount. Retail investors will be informed by letter of the prices of the two HK dollar notes and the settlement details by the placing bank through which they applied for the notes.