Tender for re-opening of 10-year Government Bonds under Institutional Bond Issuance Programme to be held on June 1

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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), announced today (May 23) 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 June 1, 2022 (Wednesday), for settlement on June 2, 2022 (Thursday).

     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 June 29, 2027 and will carry interest at the rate of 1.25 per cent per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on May 23, 2022 is 93.57 with an annualised yield of 2.622 per cent.

     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 Refinitiv 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 : 10GB2706 (Re-open)
Stock Code : 4235 (HKGB 1.25 2706)
Tender Date and Time : June 1, 2022 (Wednesday)
9.30am to 10.30am
Issue and Settlement Date for Tender Amount : June 2, 2022 (Thursday)
Amount on Offer : HK$2.5 billion
Maturity : 5 years
Remaining Maturity : Approximately 5.08 years
Maturity Date : June 29, 2027
Interest Rate : 1.25% p.a. payable semi-annually in arrears
Interest Payment Dates  : June 29, 2022
December 29, 2022
June 29, 2023
December 29, 2023
June 28, 2024
December 30, 2024
June 30, 2025
December 29, 2025
June 29, 2026
December 29, 2026
June 29, 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 (June 2, 2022) for the tender amount is HK$265.41 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 10GB2706 (Stock code: 4235) 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
1.622 98.23 2.622 93.60
1.672 97.99 2.672 93.37
1.722 97.75 2.722 93.15
1.772 97.51 2.772 92.93
1.822 97.28 2.822 92.70
1.872 97.04 2.872 92.48
1.922 96.81 2.922 92.26
1.972 96.57 2.972 92.04
2.022 96.34 3.022 91.82
2.072 96.11 3.072 91.60
2.122 95.88 3.122 91.38
2.172 95.65 3.172 91.16
2.222 95.42 3.222 90.95
2.272 95.19 3.272 90.73
2.322 94.96 3.322 90.51
2.372 94.73 3.372 90.30
2.422 94.50 3.422 90.08
2.472 94.27 3.472 89.87
2.522 94.05 3.522 89.66
2.572 93.82 3.572 89.44
2.622 93.60 3.622 89.23

 
*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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