Hong Kong Reopens RMB 1.5B Government Bond Tender for Infrastructure Program

The Hong Kong Monetary Authority announced a RMB 1.5 billion tender for 10-year government bonds scheduled for April 23, 2026, expanding its Infrastructure Bond Programme through a re-opening of existing issue 10GB3505001.

The bonds carry a 2.29% annual coupon paid semi-annually and mature on May 15, 2035. At indicative pricing of 102.99, the semi-annualized yield sits at 1.929%—a modest premium reflecting current offshore RMB market conditions.

Tender Mechanics

Settlement occurs April 27, 2026. Only Primary Dealers appointed under the Infrastructure Bond Programme can participate directly, though investors can access the tender through these dealers. Minimum bid: RMB 50,000 or multiples thereof. Successful bidders pay accrued interest of RMB 505.05 per minimum denomination.

Results drop by 3:00 pm on tender day via HKMA's website, Bloomberg (GBHK), and Refinitiv.

Broader RMB Market Context

This tender follows China's Ministry of Finance announcement on April 15 of a separate RMB 15.5 billion treasury bond issuance in Hong Kong scheduled for April 22—just one day before the HKMA tender. The back-to-back issuances signal coordinated efforts to deepen offshore RMB liquidity pools.

Hong Kong has been aggressively building out its RMB hub infrastructure. The HKMA launched offshore RMB bond repo business in early 2025, then enhanced it in August 2025 to support rehypothecation of bond collateral and cross-currency repo transactions. These mechanisms help institutional investors manage RMB positions more efficiently.

What the Proceeds Fund

Money raised goes toward infrastructure projects under Hong Kong's Infrastructure Bond Framework. The bonds trade on the Stock Exchange of Hong Kong under stock code 85024, fully fungible with the existing 10GB3505001 issue.

For institutions tracking offshore RMB sovereign exposure, this tender offers a liquid entry point into Hong Kong government credit with a near-decade duration. The 1.929% yield compares to onshore Chinese government bonds, though currency and liquidity dynamics differ materially in offshore markets.