james ding
January 10, 2025 07:26
The Hong Kong Monetary Authority plans to conduct a bidding for 10-year HKD HKSAR institutional government bonds on January 15, 2025 at an annual interest rate of 3.84%.
The Hong Kong Monetary Authority (HKMA), on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced a tender for 10-year HKD institutional government bonds. The tender, which is part of the Infrastructure Bond Program, is scheduled to take place on Wednesday, January 15, 2025, with settlement expected the following day, according to the Hong Kong Monetary Authority.
Bond details and bidding process
The HKMA plans to offer a total of HK$2 billion in bonds maturing on January 16, 2035. The bonds have an interest rate of 3.84% per annum and are paid semiannually. Bidding will be open only to primary dealers appointed under the Infrastructure Bond Program. Interested parties must submit applications through their dealer and each bid requires a minimum of HK$50,000 or multiples thereof.
Announcement of bidding results
Bidding results can be checked on various platforms, including the HKMA website, Hong Kong government bond website, Bloomberg, and Refinitiv. The announcement will be made around 3pm on the day of the bidding.
Additional information
Identified by issue number 10GB3501001 and stock code 4288 (HKGB 3.84 3501), these bonds pay interest on January 16 and July 16 of each year from the date of issuance. The bonds are part of the institutional arm of the Infrastructure Bond Program, with proceeds allocated to infrastructure projects in accordance with the infrastructure bond framework under which they are issued.
Impact on the market
This bond issuance is a strategic move by the HKMA to finance infrastructure development and reflects the government’s commitment to strengthening local economic growth through strong investment in public projects. The bonds are scheduled to begin trading on the Hong Kong Stock Exchange on January 17, 2025.
Competitive bidding ensures that bonds are distributed efficiently to institutional investors, supporting the government’s fiscal strategy and infrastructure goals.
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