Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 7 June 2023

Press Releases

29 May 2023

Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 7 June 2023

The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announced today (29 May) that a tender of 5-year Government Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2706 under the Institutional Bond Issuance Programme will be held on Wednesday, 7 June 2023, for settlement on Thursday, 8 June 2023.

An additional amount of HK$2.5 billion of the outstanding 10-year Bonds (issue no. 10GB2706) will be on offer.  The Bonds will mature on 29 June 2027 and will carry interest at the rate of 1.25% per annum payable semi-annually in arrears.  The Indicative Pricings of the Bonds on 29 May 2023 are 91.67 with an annualised yield of 3.485%.

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 Hong Kong Government Bonds at https://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 Hong Kong Government Bonds website, the Refinitiv screen (HKGBINDEX), and Bloomberg (GBHK <GO>) not later than 3:00 pm on the tender day.

Hong Kong Monetary Authority
29 May 2023


 

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

:

10GB2706 (Re-open)

Stock Code

:

4235 (HKGB 1.25 2706)

Tender Date and Time

:

Wednesday, 7 June 2023

9:30 am to 10:30 am

Issue and Settlement Date for Tender Amount

:

Thursday, 8 June 2023

Amount on Offer

:

HK$2.5 billion

Maturity              

:

5 years

Remaining Maturity 

:

Approximately 4.06 years

Maturity Date

:

29 June 2027

Interest Rate    

:

1.25% p.a. payable semi-annually in arrears

Interest Payment Dates 

:

29 June 2023

29 December 2023

28 June 2024

30 December 2024

30 June 2025

29 December 2025

29 June 2026

29 December 2026

29 June 2027

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 (8 June 2023) for the tender amount is HK$275.68 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 https://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 10GB2706 (Stock code: 4235) listed on the Stock Exchange of Hong Kong.

 

Price/Yield Table of the Government Bonds at tender (for reference only*):

Yield-to-Maturity

Price

Yield-to-Maturity

Price

2.485

95.32

3.485

91.71

2.535

95.13

3.535

91.54

2.585

94.95

3.585

91.36

2.635

94.76

3.635

91.19

2.685

94.58

3.685

91.02

2.735

94.40

3.735

90.84

2.785

94.22

3.785

90.67

2.835

94.04

3.835

90.49

2.885

93.85

3.885

90.32

2.935

93.67

3.935

90.15

2.985

93.49

3.985

89.98

3.035

93.31

4.035

89.81

3.085

93.13

4.085

89.64

3.135

92.96

4.135

89.47

3.185

92.78

4.185

89.30

3.235

92.60

4.235

89.13

3.285

92.42

4.285

88.96

3.335

92.24

4.335

88.79

3.385

92.07

4.385

88.62

3.435

91.89

4.435

88.45

3.485

91.71

4.485

88.28

 

* 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
29 May 2023

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Last revision date : 29 May 2023