Wang Long Chai
Aug 5, 2024 09:57
The Hong Kong Monetary Authority (HKMA) will hold a tender for the 1-year HONIA Index Floating Rate Bonds on 14 August 2024 under the Agency Bond Issuance Programme.
The Hong Kong Monetary Authority (HKMA), representing the Hong Kong Special Administrative Region Government (HKSAR Government), has announced a tender for the 1-year HONIA Index Floating Rate Bonds (Bonds) under the Agency Bond Issuance Programme. According to the Hong Kong Monetary Authority, the tender is scheduled for Wednesday, 14 August 2024, with settlement scheduled for Thursday, 15 August 2024.
Bid Details
A total of HK$1.5 billion worth of one-year bonds will be tendered. The bonds will mature on 15 August 2025 and bear interest indexed to the Hong Kong Dollar Daily Index Average (HONIA) and payable quarterly in arrears. The tender will only be open to authorised dealers appointed as primary dealers. Any interested parties may apply through the primary dealers listed on the Hong Kong Government Bonds website.
Each bid must be for a minimum of HK$50,000 or an integer multiple thereof. The bid results will be posted on the HKMA website, Hong Kong government bond website, Refinitiv screen (HKGBINDEX), Bloomberg (GBHK) and the Hong Kong Stock Exchange (HKSE) website by 3pm on the bid date.
Key Information
| Problem number | 01GH2508 |
|---|---|
| Stock code | 4282 (Hong Kong Franc 2508) |
| Bidding date and time | Wednesday, August 14, 2024, 9:30 a.m. to 10:30 a.m. |
| Payment date | Thursday, August 15, 2024 |
| Offer amount | 1.5 billion Hong Kong dollars |
| Issue price | That pair |
| Maturity | one year |
| Expiration date | August 15, 2025 |
| interest rate | Indexed to the sum of the annual compounded average of HONIA’s daily yield for each interest period and the highest allowable spread at the time of bid, with a minimum of 0% per interest period. Details of interest rate calculations can be found on the Hong Kong Government Bonds website. |
| Interest Period End Date | November 15, 2024; February 17, 2025; May 15, 2025; August 15, 2025 |
| Interest payment date | November 19, 2024; February 19, 2025; May 19, 2025; August 19, 2025 |
| How to bid | Competitive bidding |
| Bid amount | Each competitive bid must be for an amount of HK$50,000 or an integer multiple thereof. Applications must be submitted through the Primary Dealer. |
| Other details | Please refer to the information memorandum on the Hong Kong Government Bonds website or contact your primary dealer. |
| Expected listing date | August 16, 2024 |
Background and Importance
These bond issuances are part of a broader strategy to enhance the depth and diversity of the HKMA. liquidity By indexing interest rates to HONIA, the HKMA aims to provide a more stable and transparent benchmark, reflecting real borrowing costs in the interbank market on the same day. This move is expected to attract more institutional investors and further enhance confidence in the Hong Kong bond market.
For further details, please visit the official website of the Hong Kong Monetary Authority.
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