HKMA to Tender 7-Year RMB Bonds Worth RMB1.25B on June 25, 2026
The Hong Kong Monetary Authority (HKMA) announced it will hold a tender for 7-year RMB institutional government bonds on June 25, 2026. The issuance, part of the Infrastructure Bond Programme, will offer RMB1.25 billion in bonds carrying a fixed annual interest rate of 1.78%, payable semi-annually. Settlement is set for June 29, 2026, and the bonds will mature on June 29, 2033.
This marks a notable issuance in Hong Kong’s offshore RMB market, as 7-year RMB bonds are not a common tenor in recent sovereign and government bond tenders. The proceeds of the bonds will reportedly be allocated to infrastructure projects under the Infrastructure Bond Framework, underscoring Hong Kong’s strategy of leveraging its position as a global offshore RMB hub.
The tender will be conducted via competitive bidding and is open exclusively to Primary Dealers listed under the programme. Investors interested in participating must place bids through these dealers, with a minimum subscription amount of RMB50,000. The results of the tender will be published on the HKMA and Hong Kong Government Bonds websites, as well as Bloomberg and Refinitiv, by 3:00 pm on the tender day.
Key Details:
- Issue Amount: RMB1.25 billion
- Coupon Rate: 1.78% per annum
- Tender Date: June 25, 2026, 9:30 am to 10:30 am
- Settlement Date: June 29, 2026
- Maturity Date: June 29, 2033
Historically, RMB sovereign bond tenders in Hong Kong have primarily focused on tenors such as 2-year, 3-year, 5-year, and 10-year. For example, earlier in 2026, RMB5 billion worth of 2-year bonds were issued in April, while RMB4 billion of 2-year bonds were issued in February. The announcement of a 7-year RMB tranche adds a new layer of diversity to the market, potentially catering to institutional investors seeking mid-range maturity options.
The bonds are expected to begin trading on the Hong Kong Stock Exchange on June 30, 2026. This issuance continues to align with Hong Kong’s broader goals of supporting offshore RMB liquidity and sustaining its position as the leading offshore RMB market. The Infrastructure Bond Programme, in particular, has been instrumental in channeling funds into critical development projects, reinforcing Hong Kong’s economic connectivity with mainland China.
For traders and institutional investors, this issuance offers a relatively stable yield in a low interest rate environment, backed by government creditworthiness. The fixed coupon rate of 1.78% provides predictable returns, and the semi-annual payments may appeal to income-focused investors. However, participation is limited to those with access to Primary Dealers, and the RMB-denominated nature of the bonds introduces currency risk for non-RMB investors.
Market participants will be closely watching the tender results, which could set a benchmark for future RMB institutional bond issuances in Hong Kong. Further details and tender documents are available on the Hong Kong Government Bonds website.