Hong Kong to Conduct Tender for 2-Year RMB Government Bonds
The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced an upcoming tender for 2-year RMB Institutional Government Bonds. Scheduled for November 14, 2024, the tender will be part of the Infrastructure Bond Programme, with settlement set for November 18, 2024, according to the Hong Kong Monetary Authority.
Details of the Bond Issue
The HKMA will offer a total of RMB1.0 billion in bonds, which will mature on November 18, 2026. These bonds will carry an interest rate of 2.04% per annum, payable semi-annually. The tender is exclusively open to Primary Dealers appointed under the Infrastructure Bond Programme. Interested parties can apply for these bonds through any Primary Dealer listed on the Hong Kong Government Bonds website.
Tender Procedure and Specifications
The tender will take place from 9:30 am to 10:30 am on November 14, 2024. Each tender must be for an amount of RMB50,000 or integral multiples thereof. Results will be published on various platforms, including the HKMA’s website, the Hong Kong Government Bonds website, Bloomberg, and Refinitiv, no later than 3:00 pm on the day of the tender.
Utilization of Bond Proceeds
Proceeds from the bond issue will be directed towards infrastructure projects, aligning with the guidelines of the Infrastructure Bond Framework. The bonds are expected to commence trading on the Stock Exchange of Hong Kong Limited on November 19, 2024.
Market Context and Implications
This bond issue forms part of Hong Kong's broader strategy to leverage its financial markets to support infrastructure development. It reflects ongoing efforts to utilize the RMB currency in international financial markets, reinforcing Hong Kong's position as a global financial hub.
For further information, including the complete list of Primary Dealers and details on the Infrastructure Bond Programme, interested parties are encouraged to visit the Hong Kong Government Bonds website.