Hong Kong Government Reveals Results of Retail Infrastructure Bond Subscription

The Hong Kong Government has announced the subscription and allocation results of its latest retail infrastructure bond offering. According to the Hong Kong Monetary Authority (HKMA), the subscription period closed on December 6, 2024, with a total of 127,594 valid applications received. These applications amounted to a principal total of HK$17,776,530,000.

Subscription Details

Data gathered from placing banks and the Hong Kong Securities Clearing Company Limited (HKSCC) indicated that placing banks alone accounted for 118,935 applications, totaling HK$16,960,700,000. Meanwhile, the HKSCC, which includes submissions made through securities brokers, contributed 8,659 applications for HK$815,830,000. The comprehensive subscription demonstrates robust interest from the public in the retail bond market.

Allocation Mechanism

Allocation of the retail bonds was conducted as per the mechanism detailed in the Issue Circular dated November 26, 2024. All applications requesting 100 or fewer lots were fully allocated the amounts applied for. For applications exceeding 100 lots, the allocation was capped at 100 lots per applicant. Consequently, the total final issuance amount of the bonds stands at HK$17,730,350,000.

Issuance and Listing

The issuance of the retail infrastructure bond is scheduled for December 17, 2024. Following issuance, the bonds will be listed on the Stock Exchange of Hong Kong on December 18, 2024. The HKMA has confirmed that notifications concerning individual allocation results, applicable subscription moneys, and any necessary refund of application moneys will be communicated by the placing banks and the HKSCC.

For further details, please visit the Hong Kong Monetary Authority.