ALLEN & OVERY PRESS RELEASE


Allen & Overy in Hong Kong recently advised BNP Paribas as arranger in relation to a US$10 billion limited recourse secured debt issuance programme for Liquidity Limited and Liquidity + Limited special purpose vehicles located in the Cayman Islands.

The programme, which was established on 19th May, 2003, will allow for the issuance of bonds, loans, credit-linked notes, cash and synthetic CDOs as well as other types of debt instruments which will be funded by, and secured over, the proceeds from certain underlying assets. These assets typically consist of securities, loans and other types of instruments or assets issued in domestic markets across Asia, thereby creating value for investors with an appetite for the credit and other risk associated with such assets.

It is expected that certain notes issued under the programme by Liquidity + Limited will be rated by Standard & Poor's and/or Moody's. Notes issued under the programme have been approved for listing in the Luxembourg Stock Exchange.

Chin-Chong Liew, a partner specialising in structured and derivatives products, led the Allen & Overy team and commented: "Allen & Overy is very pleased to be associated with a number of significant asset repackaging programmes in Asia, including this "Liquidity" programme arranged by BNP Paribas. The trend towards structured financial instruments and synthetic product, such as CDOs and structured credit derivatives, looks set to continue in Hong Kong, China and the rest of Asia, both in terms of originators accessing the market and the yield appetite of investors."

Partners Chin-Chong Liew and Joseph Tse and associates Walter Son and Karen Lee of Allen & Overy Hong Kong advised the arranger and partner Hyo Young Kang and associate Pearl Wai advised the trustee on the programme as to English Law. Walkers advised the issuers.