Darius Varu
November 14, 2024 21:30
The Hong Kong Monetary Authority will hold a tender for one-year HONIA index floating rate bonds on 20 November 2024, offering HK$1.5 billion under its infrastructure bond program.
The Hong Kong Monetary Authority (HKMA), on behalf of the Hong Kong Special Administrative Region Government, has announced a tender for one-year maturity HONIA index floating rate bonds. The auction, which is part of the Hong Kong Infrastructure Bond Program, is scheduled to take place on November 20, 2024, with settlement expected the next day, according to the Hong Kong Monetary Authority.
Offering Details
The HKMA plans to issue $1.5 billion in one-year HKD bonds due on November 21, 2025. These bonds pay interest linked to the Hong Kong Dollar Overnight Index Average (HONIA), with interest delinquent quarterly. This issuance is intended only for primary dealers who are part of the Infrastructure Bond Program and applications must be made through such dealers. The minimum bid amount is set at HK$50,000 or multiples thereof.
Bidding and payment information
Bidding will take place on November 20, 2024 from 9:30 AM to 10:30 AM. Results will be announced publicly through the HKMA website, Hong Kong Treasury website, Bloomberg, and Refinitiv by 3pm on November 20, 2024. Same day. The bonds are scheduled to begin trading on the Hong Kong Stock Exchange on November 22, 2024.
Interest Rate and Maturity
The bonds are issued at par and mature in one year. The interest rate is fixed at the annual compounded average of the daily HONIA plus the highest spread allowed at the time of bidding, ensuring a minimum of 0% per interest period. The full methodology for interest calculation is detailed in the Agency Issue Bid Information Memorandum available on the Hong Kong Government Bonds website.
infrastructure investment
Proceeds from the notes will be used for infrastructure projects that comply with the guidelines set out in the Infrastructure Bond Framework. This plan highlights the HKMA’s commitment to promoting sustainable development through strategic investments in infrastructure.
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