Hong Kong Monetary Authority Announces Tender for 10-Year Government Bonds

James Ding
Jan 10, 2025 07:26

The Hong Kong Monetary Authority will conduct a tender for 10-year HKD HKSAR Institutional Government Bonds on January 15, 2025, with an interest rate of 3.84% per annum.

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced a tender for 10-year HKD Institutional Government Bonds. This tender, part of the Infrastructure Bond Programme, is scheduled for Wednesday, January 15, 2025, with settlement on the following day, according to the Hong Kong Monetary Authority.

Bond Details and Tender Process

The HKMA will offer a total of HK$2.0 billion in bonds, which will mature on January 16, 2035. These bonds will carry an interest rate of 3.84% per annum, paid semi-annually. The tender is exclusively open to Primary Dealers appointed under the Infrastructure Bond Programme. Interested parties must submit their applications through these dealers, with each bid requiring a minimum of HK$50,000 or its multiples.

Publication of Tender Results

Results of the tender will be made available on various platforms, including the HKMA’s website, the Hong Kong Government Bonds website, Bloomberg, and Refinitiv. The announcement is expected by 3:00 pm on the day of the tender.

Additional Information

These government bonds, identified by issue number 10GB3501001 and stock code 4288 (HKGB 3.84 3501), will have interest payment dates every January 16 and July 16, starting from the issuance date. The bonds are part of the institutional segment of the Infrastructure Bond Programme, with proceeds earmarked for infrastructure projects as per the published Infrastructure Bond Framework.

Market Implications

The issuance of these bonds is a strategic move by the HKMA to fund infrastructure development, reflecting the government’s commitment to enhancing the region’s economic growth through robust investment in public projects. The bonds are set to commence trading on the Stock Exchange of Hong Kong Limited on January 17, 2025.

The competitive tender method ensures that the bonds are allocated efficiently to institutional investors, thus supporting the government’s financial strategies and infrastructure goals.

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