Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on November 13

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The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (November 4) that a tender of 5-year Government Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2408 under the Institutional Bond Issuance Programme will be held on November 13 (Wednesday), for settlement on November 14 (Thursday).
      
     An additional amount of HK$2.5 billion of the outstanding 10-year Bonds (issue no. 10GB2408) will be on offer. The Bonds will mature on August 7, 2024 and will carry interest at the rate of 2.22% per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on November 4 is 103.50 with an annualised yield of 1.462%.
 
     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 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 3pm on the tender day.

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 : 10GB2408 (Re-open)
 
Stock code : 4221 (HKGB 2.22 2408)
 
Tender Date and Time : Wednesday, November 13, 2019
9.30am to 10.30am
 
Issue and Settlement Date for tender amount
 
: Thursday, November 14, 2019
Amount on Offer
 
: HK$2.5 billion
Maturity              
 
: 5 years
Remaining Maturity : Approximately 4.73 years
 
Maturity Date : August 7, 2024
 
Interest Rate     : 2.22% p.a. payable semi-annually in arrears
 
Interest Payment Dates  : February 7, 2020
August 7, 2020
February 8, 2021
August 9, 2021
February 7, 2022
August 8, 2022
February 7, 2023
August 7, 2023
February 7, 2024
August 7, 2024
 
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 (November 14, 2019) for the tender amount is HK$301.07 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 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 10GB2408 (Stock code: 4221) 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
0.462 108.22 1.462 103.47
0.512 107.97 1.512 103.24
0.562 107.73 1.562 103.02
0.612 107.49 1.612 102.79
0.662 107.25 1.662 102.56
0.712 107.01 1.712 102.33
0.762 106.77 1.762 102.10
0.812 106.53 1.812 101.88
0.862 106.29 1.862 101.65
0.912 106.05 1.912 101.43
0.962 105.81 1.962 101.20
1.012 105.58 2.012 100.98
1.062 105.34 2.062 100.75
1.112 105.10 2.112 100.53
1.162 104.87 2.162 100.31
1.212 104.64 2.212 100.09
1.262 104.40 2.262 99.87
1.312 104.17 2.312 99.65
1.362 103.94 2.362 99.43
1.412 103.71 2.412 99.21
1.462 103.47 2.462 98.99

 
* 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.

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