Tender for the re-opening of 10-Year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 6 October 2010

Press Releases

24 Sep 2010

Tender for the re-opening of 10-Year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 6 October 2010

The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (Friday) that a tender of 10-year Government Bonds (Bonds) through the re-opening of existing Government Bond issue 10GB2001 under the Institutional Bond Issuance Programme will be held on Wednesday, 6 October 2010, for settlement on Thursday, 7 October 2010.

An additional amount of HK$2 billion of the outstanding 10-year Bonds (issue no. 10GB2001) will be on offer. The Bonds will mature on 13 January 2020 and will carry interest at the rate of 2.93% per annum payable semi-annually in arrears. The Bonds Fixings on 24 September 2010 is 106.92 with an annualised yield of 2.120%.

Under the Institutional Bond Issuance Programme, tender is open only to Recognised Dealers which are appointed as Primary Dealers. Any tender applications for the Bonds must be submitted through a Primary Dealer on the current published list, which can be obtained from the Government Bond Programme's website at http://www.hkgb.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof.

Tender results will be published on the HKMA's website, the Government Bond Programme's website, the Reuters screen (HKGBINDEX), and Bloomberg not later than 3:00 pm on the tender day.

Hong Kong Monetary Authority
24 September 2010

HKSAR GOVERNMENT
INSTITUTIONAL BOND ISSUANCE PROGRAMME
TENDER INFORMATION

 

Tender information of re-opening of 10-Year Government Bonds under the Institutional Bond Issuance Programme:-

Issue Number : 10GB2001
Stock code : 4203 (HKGB 2.93 2001)
Tender Date and Time : Wednesday, 6 October 2010
9:30 am to 10:30 am
Issue and Settlement Date for Tender Amount : Thursday, 7 October 2010
Amount on Offer : HK$2 billion
Maturity               : 10 years
Remaining Maturity : Approximately 9.27 years
Maturity Date : 13 January 2020
Interest Rate : 2.93% p.a. payable semi-annually in arrears
Interest Payment Dates : 12 January 2011
12 July 2011
12 January 2012
12 July 2012
14 January 2013
12 July 2013
13 January 2014
14 July 2014
12 January 2015
13 July 2015
12 January 2016
12 July 2016
12 January 2017
12 July 2017
12 January 2018
12 July 2018
14 January 2019
12 July 2019
13 January 2020
Method of Tender : Competitive tender
Tender Amount : Each competitive tender must be for an amount of HK$50,000 or integral multiples thereof.  Any tender applications for the Bonds must be submitted through a Primary Dealer on the current published list. The accrued interest to be paid by successful bidders on the issue date (7 October 2010) for the tender amount is HK$349.19 per minimum denomination of HK$50,000. (The accrued interest to be paid for tender amount exceeding HK$50,000 may not be exactly equal to the figures calculated from the accrued interest per minimum denomination of HK$50,000 due to rounding).
Other details : Please see Information Memorandum available on the Government Bond Programme's website at http://www.hkgb.gov.hk or approach Primary Dealers.
Expected commencement date of dealing on
the Stock Exchange
of Hong Kong Limited
: The tender amount is fully fungible with the existing 10GB2001 (Stock code: 4203) listed on the Stock Exchange of Hong Kong.

Price/Yield Table of the re-opening Government Bonds at tender for reference* only:-

Yield-to-Maturity Price Yield-to-Maturity Price
1.12 115.91 2.12 106.88
1.17 115.44 2.17 106.45
1.22 114.97 2.22 106.02
1.27 114.50 2.27 105.59
1.32 114.04 2.32 105.17
1.37 113.57 2.37 104.75
1.42 113.11 2.42 104.33
1.47 112.65 2.47 103.91
1.52 112.19 2.52 103.50
1.57 111.74 2.57 103.08
1.62 111.29 2.62 102.67
1.67 110.83 2.67 102.26
1.72 110.39 2.72 101.86
1.77 109.94 2.77 101.45
1.82 109.50 2.82 101.05
1.87 109.05 2.87 100.65
1.92 108.61 2.92 100.25
1.97 108.18 2.97 99.85
2.02 107.74 3.02 99.45
2.07 107.31 3.07 99.06
2.12 106.88 3.12 98.67

* Disclaimer

The information provided here is for reference only. Although extreme care has been taken to ensure that the information provided is accurate and up-to-date, the HKMA does not warrant that all, or any part of, the information provided is accurate in all respects. You are encouraged to conduct your own enquiries to verify any particular piece of information provided on it. The HKMA shall not be liable for any loss or damage suffered as a result of any use or reliance on any of the information provided here.

Hong Kong Monetary Authority
24 September 2010

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Last revision date : 24 September 2010