Tender for re-opening of 10-year Government Bonds under Institutional Bond Issuance Programme to be held on May 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 (May 6) that a tender of 5-year Government Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2601 under the Institutional Bond Issuance Programme will be held on May 13 (Wednesday), for settlement on May 14 (Thursday).
 
     An additional amount of HK$2.5 billion of the outstanding 10-year Bonds (issue no. 10GB2601) will be on offer. The Bonds will mature on January 21, 2026 and will carry interest at the rate of 1.68 per cent per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on May 6 is 107.22 with an annualised yield of 0.402 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 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 : 10GB2601 (Re-open)
 
Stock code : 4230 (HKGB 1.68 2601)
 
Tender Date and Time : May 13, 2020 (Wednesday)
9.30am to 10.30am
 
Issue and Settlement Date for tender amount
 
: May 14, 2020 (Thursday)
Amount on Offer
 
: HK$2.5 billion
Maturity              
 
: 10 years
Remaining Maturity : Approximately 5.69 years
 
Maturity Date : January 21, 2026
 
Interest Rate     : 1.68 per cent p.a. payable semi-annually in arrears
 
Interest Payment Dates  : July 21, 2020
January 21, 2021
July 21, 2021
January 21, 2022
July 21, 2022
January 25, 2023
July 21, 2023
January 22, 2024
July 22, 2024
January 21, 2025
July 21, 2025
January 21, 2026
 
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 (May 14, 2020) for the tender amount is HK$262.36 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 minimun 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 10GB2601 (Stock code: 4230) 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
-0.598 113.21 0.402 107.18
-0.548 112.90 0.452 106.89
-0.498 112.59 0.502 106.60
-0.448 112.28 0.552 106.31
-0.398 111.97 0.602 106.02
-0.348 111.66 0.652 105.74
-0.298 111.36 0.702 105.45
-0.248 111.05 0.752 105.17
-0.198 110.75 0.802 104.88
-0.148 110.45 0.852 104.60
-0.098 110.14 0.902 104.31
-0.048 109.84 0.952 104.03
0.002 109.54 1.002 103.75
0.052 109.24 1.052 103.47
0.102 108.95 1.102 103.19
0.152 108.65 1.152 102.92
0.202 108.35 1.202 102.64
0.252 108.06 1.252 102.36
0.302 107.77 1.302 102.09
0.352 107.47 1.352 101.81
0.402 107.18 1.402 101.54

 
* 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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