HKMA Announces Tender of 1-Year HONIA-Indexed Floating Rate Notes
The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), announced on 5 November 2026 that it will conduct a tender for HK$1.5 billion 1-year Hong Kong Dollar (HKD) HONIA-indexed Floating Rate Notes on Wednesday, 11 November 2026. The issuance is part of the Infrastructure Bond Programme, with settlement scheduled for 12 November 2026 and maturity on 12 November 2027.
Details of the Tender
The tender will take place between 9:30 am and 10:30 am on 11 November 2026. The notes, issued at par, will carry interest indexed to the annualised compounded average of daily Hong Kong Dollar Overnight Index Average (HONIA) rates during each interest period, plus the highest accepted spread at tender. The interest rate is subject to a minimum of 0% per period and will be payable quarterly in arrears. Key interest payment dates are set for 16 February 2027, 17 May 2027, 16 August 2027, and 16 November 2028.
Each competitive tender must be for an amount of HK$50,000 or integral multiples thereof. Applications for the notes must be submitted through Primary Dealers listed on the Hong Kong Government Bonds website. Tender results will be published by 3:00 pm on the tender day via the HKMA website, the Hong Kong Government Bonds website, Bloomberg (GBHK <GO>), and Refinitiv (IBPGSBPINDEX).
Infrastructure Bond Programme Context
The notes, identified as issue number 01GH2711001 and stock code 4212 (HKGB FRN 2711), are issued under the institutional segment of the Infrastructure Bond Programme. Proceeds from the issuance will be allocated to infrastructure projects in accordance with the Infrastructure Bond Framework. The notes are expected to commence trading on the Stock Exchange of Hong Kong on 13 November 2026.
HONIA, the benchmark for these notes, is a transaction-based overnight interbank funding rate and serves as Hong Kong's alternative reference rate to HIBOR. The tender spread and subsequent HONIA movements will be key determinants of investor returns, offering exposure to government credit with income linked to realised overnight funding rates.