13 March 2000
FOR PUBLICATION ONLY IN HONG KONG

KCRC prices successful US$1,000,000,000 global notes issue

 
Hong Kong, 13 March 2000 - Kowloon-Canton Railway Corporation ("KCRC") announced today that it has launched and priced a 10 year SEC-registered Global Notes issue of US$1,000,000,000.The issue was priced at 99.661% with a coupon of 8.0% and a spread of 1.68% over Treasuries.The Notes will be listed in New York, Hong Kong and London.
Representing the largest Notes issue to come out of Hong Kong this year the deal met with a robust reception and was 1.25 times oversubscribed.Demand was particularly strong from the United States with good support from Asia and Europe.This transaction successfully completes the introduction of KCRC's credit to the worldwide investor community, following the successful US$1,000,000,000 Eurodollar bond issued in July 1999.K.Y. Yeung, Chairman and Chief Executive of KCRC noted: "This is a second strong vote of confidence in our credit story, this time from America and supported as usual by Asia and Europe."
HSBC and Morgan Stanley Dean Witter acted as Joint Bookrunners and Joint Lead Managers.Co-managers are Chase Securities Inc., Credit Suisse First Boston, Deutsche Banc Alex. Brown, J.P. Morgan and Salomon Smith Barney Inc.
KCRC will use the proceeds of the notes to finance the West Rail, Phase I and East Rail Extensions projects.
The long-term debt obligations of KCRC are rated "A" by Standard & Poor's and "A3" by Moody's.