Tender for the re-opening of 5-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 3 September 2014

Press Releases

25 Aug 2014

Tender for the re-opening of 5-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 3 September 2014

The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (Monday) that a tender of 2-year Government Bonds (Bonds) through the re-opening of existing 5-year Government Bond issue 05GB1612 under the Institutional Bond Issuance Programme will be held on Wednesday, 3 September 2014, for settlement on Thursday, 4 September 2014.

An additional amount of HK$3.5 billion of the outstanding 5-year Bonds (issue no. 05GB1612) will be on offer.  The Bonds will mature on 8 December 2016 and will carry interest at the rate of 0.97% per annum payable semi-annually in arrears. The Bonds Fixings on 25 August 2014 is 100.91 with an annualised yield of 0.571%.

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, the 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
25 August 2014 


HKSAR GOVERNMENT
INSTITUTIONAL BOND ISSUANCE PROGRAMME
TENDER INFORMATION
_________________________________________________________________

Tender information of re-opening of 5-year Government Bonds under the Institutional Bond Issuance Programme:-

Issue Number

:

05GB1612 (Re-open)

Stock code

:

4211 (HKGB 0.97 1612)

Tender Date and Time

:

Wednesday, 3 September 2014
9:30 am to 10:30 am

Issue and Settlement Date for tender amount

:

Thursday, 4 September 2014

Amount on Offer

:

HK$3.5 billion

Maturity  

:

2 years

Remaining Maturity

:

Approximately 2.26 years

Maturity Date

:

8 December 2016

Interest Rate    

:

0.97% p.a. payable semi-annually in arrears

Interest Payment Dates 

:

8 December 2014
8 June 2015
8 December 2015
8 June 2016
8 December 2016 

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 (4 September 2014) for the tender amount is HK$115.60 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 05GB1612 (Stock code: 4211) 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

-0.429

103.18

0.571

100.90

-0.379

103.07

0.621

100.78

-0.329

102.95

0.671

100.67

-0.279

102.84

0.721

100.56

-0.229

102.72

0.771

100.45

-0.179

102.61

0.821

100.34

-0.129

102.49

0.871

100.23

-0.079

102.38

0.921

100.11

-0.029

102.26

0.971

100.00

0.021

102.15

1.021

99.89

0.071

102.03

1.071

99.78

0.121

101.92

1.121

99.67

0.171

101.80

1.171

99.56

0.221

101.69

1.221

99.45

0.271

101.58

1.271

99.34

0.321

101.46

1.321

99.23

0.371

101.35

1.371

99.12

0.421

101.24

1.421

99.01

0.471

101.12

1.471

98.90

0.521

101.01

1.521

98.79

0.571

100.90

1.571

98.68

 

* 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
25 August 2014

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Last revision date : 25 August 2014