Hong Kong Monetary Authority Announces Tender of 2-Year Exchange Fund Notes
The Hong Kong Monetary Authority (HKMA) has announced that a tender for 2-year Exchange Fund Notes will be held on 21 August 2024, with settlement scheduled for 22 August 2024. This issuance aims to roll over a maturing issue of 2-year Exchange Fund Notes on the same day, according to the HKMA.
Details of the Tender
A total of HK$1,200 million in 2-year Notes will be on offer. Of this, HK$5 million is reserved for non-competitive tender bids, which can be submitted through the Hong Kong Securities Clearing Company Limited (HKSCC). If the non-competitive tender is under-subscribed, the remaining amount will be added to the competitive tender portion, initially set at HK$1,195 million. The Notes will mature on 24 August 2026 and carry an interest rate of 2.77% per annum, payable semi-annually in arrears.
Participation Guidelines
Members of the public interested in submitting non-competitive tender applications through HKSCC can do so via Stock Exchange Participants/Brokers or directly through HKSCC if they hold Investor Accounts in the Central Clearing and Settlement System (CCASS). Competitive tender applications must be submitted through any of the Eligible Market Makers appointed by the HKMA. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tenders.
Publication of Results
The results of the tender will be published on the HKMA’s website, the Refinitiv screen (HKMAOOE), and Bloomberg. Applicants who submitted non-competitive tender bids through HKSCC can also obtain results from Stock Exchange Participants/Brokers or directly from the CCASS terminal for CCASS Broker/Custodian/Participants and the CCASS Phone System.
Tender Information Summary
| Issue Number | 02Y2608 |
|---|---|
| Stock Code | 4100 (EFN 2.77 2608) |
| Tender Date and Time | Wednesday, 21 August 2024, 9:30 a.m. to 10:30 a.m. |
| Issue and Settlement Date | Thursday, 22 August 2024 |
| Amount on Offer | HK$1,200 million (up to HK$5 million for non-competitive tender) |
| Commencement/Deadline for Submission of Non-Competitive Tender Bids | Please refer to HKSCC requirements |
| Maturity | Two years |
| Maturity Date | Monday, 24 August 2026 |
| Interest Rate | 2.77% p.a. |
| Interest Payment Dates | 24 February 2025, 22 August 2025, 23 February 2026, 24 August 2026 |
| Tender Amount | Each tender must be for an amount of HK$50,000 or integral multiples thereof. |
| Other Details | Please see Information Memorandum or approach Eligible Market Makers, HKSCC, or brokers who are Exchange Participants of the Stock Exchange of Hong Kong. |
| Expected Commencement Date of Dealing on the Stock Exchange of Hong Kong | Friday, 23 August 2024 |
Price/Yield Table
| Yield-to-Maturity | Price | Yield-to-Maturity | Price |
|---|---|---|---|
| 1.77 | 101.97 | 2.77 | 100.04 |
| 1.82 | 101.87 | 2.82 | 99.94 |
| 1.87 | 101.78 | 2.87 | 99.85 |
| 1.92 | 101.68 | 2.92 | 99.75 |
| 1.97 | 101.58 | 2.97 | 99.66 |
| 2.02 | 101.48 | 3.02 | 99.56 |
| 2.07 | 101.39 | 3.07 | 99.47 |
| 2.12 | 101.29 | 3.12 | 99.37 |
| 2.17 | 101.19 | 3.17 | 99.28 |
| 2.22 | 101.09 | 3.22 | 99.18 |
| 2.27 | 101.00 | 3.27 | 99.09 |
| 2.32 | 100.90 | 3.32 | 99.00 |
| 2.37 | 100.80 | 3.37 | 98.90 |
| 2.42 | 100.71 | 3.42 | 98.81 |
| 2.47 | 100.61 | 3.47 | 98.71 |
| 2.52 | 100.52 | 3.52 | 98.62 |
| 2.57 | 100.42 | 3.57 | 98.53 |
| 2.62 | 100.32 | 3.62 | 98.44 |
| 2.67 | 100.23 | 3.67 | 98.34 |
| 2.72 | 100.13 | 3.72 | 98.25 |
| 2.77 | 100.04 | 3.77 | 98.16 |
Disclaimer: The information provided here is for reference only. Although extreme care has been taken to ensure accuracy, the HKMA does not warrant that all information is accurate in all respects. Users are encouraged to conduct their own enquiries. The HKMA shall not be liable for any loss or damage suffered as a result of any use or reliance on this information.