Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 14 May 2014

Press Releases

30 Apr 2014

Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 14 May 2014

The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (Wednesday) that a switch tender under the Institutional Bond Issuance Programme will be held on Wednesday, 14 May 2014, for settlement on Thursday, 15 May 2014. 

This switch tender will involve issue of 10-year Government Bonds through the re-opening of existing Government Bond issue 10GB2301 (Bonds) and early redemption of Government Bond issue 10GB2001. 
 
An additional amount of HK$0.8 billion of the Bonds will be on offer.  The Bonds will mature on 17 January 2023 and will carry interest at the rate of 1.10% per annum payable semi-annually in arrears.  The Bonds Fixings on 30 April 2014 is 89.92 with an annualised yield of 2.404%.  Successful bidders will additionally be required to deliver Government Bond issue 10GB2001 to the HKMA for early redemption at 105.87.  The nominal value of Government Bond issue 10GB2001 to be delivered by a successful bidder shall equal to the nominal value of the Bonds allotted to the bidder at this switch tender.

Under the Institutional Bond Issuance Programme, tender is open only to Recognized Dealers which are appointed as Primary Dealers. Anyone wishing to apply for the Bonds on offer can do so through any of the Primary Dealers 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, Government Bond Programme’s website, the Reuters screen (HKGBINDEX), and Bloomberg (GBHK <GO>) not later than 3:00 pm on the tender day.

 

Hong Kong Monetary Authority
30 April 2014

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

:

10GB2301 (Re-open) 

Stock code

:

4215 (HKGB 1.10 2301) 

Tender Date and Time

:

Wednesday, 14 May 2014
9:30 am to 10:30 am 

Issue and Settlement Date

:

Thursday, 15 May 2014

Amount on Offer

:

HK$0.8 billion 

Maturity

:

10 years

Remaining Maturity

:

Approximately 8.68 years

Maturity Date

:

17 January 2023 

Interest Rate    

:

1.10% p.a., payable semi-annually in arrears 

Interest Payment Dates 

:

17 July 2014
19 January 2015
17 July 2015
18 January 2016
18 July 2016
17 January 2017
17 July 2017
17 January 2018
17 July 2018
17 January 2019
17 July 2019
17 January 2020
17 July 2020
18 January 2021
19 July 2021
17 January 2022
18 July 2022
17 January 2023 

Method of Tender

:

Competitive tender (conducted as a switch tender) 

Bond for early redemption 

:

10GB2001 (Stock code: 4203)

Redemption Price 

:

105.87

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 on Government Bond issue 10GB2301 to be paid by successful bidders on the issue date (15 May 2014) for the allotted amount is HK$177.81 per minimum denomination of HK$50,000. 

The accrued interest on Government Bond issue 10GB2001 to be received by successful bidders on the issue date (15 May 2014) for the redeemed amount is HK$489.67 per minimum denomination of HK$50,000. 

(The accrued interest to be paid or received for allotted or redeemed 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 10GB2301 (Stock code: 4215) listed on the Stock Exchange of Hong Kong.

 

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

Yield-to-Maturity

Price

Yield-to-Maturity

Price

1.404

97.56

2.404

89.95

1.454

97.17

2.454

89.58

1.504

96.77

2.504

89.22

1.554

96.38

2.554

88.86

1.604

95.98

2.604

88.51

1.654

95.59

2.654

88.15

1.704

95.20

2.704

87.80

1.754

94.82

2.754

87.44

1.804

94.43

2.804

87.09

1.854

94.05

2.854

86.74

1.904

93.67

2.904

86.40

1.954

93.29

2.954

86.05

2.004

92.91

3.004

85.71

2.054

92.53

3.054

85.36

2.104

92.16

3.104

85.02

2.154

91.78

3.154

84.68

2.204

91.41

3.204

84.34

2.254

91.04

3.254

84.01

2.304

90.68

3.304

83.67

2.354

90.31

3.354

83.34

2.404

89.95

3.404

83.01

* 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
30 April 2014

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Last revision date : 30 April 2014