Key Facts at a Glance
| Issuer | The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (the “HKSAR Government”). |
|---|---|
| Currency | Hong Kong dollar. |
| Method of Sale | By conventional tender or switch tender. Both types of tenders will be on a competitive bid-price basis subject to a minimum bid of HK$50,000. Each tender bid must be for an integral multiple of the minimum denomination of the Bonds. Applicants submitting bids must indicate the quantity of the Bonds applied for and the bid price. Successful bidders will be allotted the Bonds at the price which they bid. For switch tender, successful bidders will additionally be required to deliver a pre-specified issue of the Bonds to the Monetary Authority for early redemption at a pre-specified price. The nominal value of the pre-specified issue of the Bonds to be delivered by a successful bidder shall equal to the nominal value of the Bonds allotted to the bidder at that switch tender. |
| Form of the Bonds | Computerized book entry form in securities accounts maintained with the Monetary Authority appointed under section 5A(1) of the Exchange Fund Ordinance (Chapter 66 of the Laws of Hong Kong) (the “Monetary Authority”). The Bonds will be issued in denominations of HK$50,000 each and higher integral multiples thereof. |
| Maturities | The maturity date of each issue of the Bonds will be announced in advance of each tender. |
| Interest Rate | Each issue of the Bonds will bear a fixed interest rate announced in advance of each tender. |
| Interest Payment | Interest will be paid semi-annually in arrears according to the actual number of days in an interest period and on the basis of a 365-day year. |
| Interest Period | The first interest period shall be the period from and including the issue date to but excluding the first interest payment date. Thereafter interest periods will run from and including each interest payment date to but excluding the next interest payment date. |
| Tender Arrangements | Tenders must be submitted through Recognized Dealers which are also appointed as Primary Dealers by 10:30 a.m. on the relevant tender day. Tender results will be announced not later than 3:00 p.m. on the relevant tender day. |
| Underwriting Arrangements | Recognized Dealers which are also appointed as Primary Dealers may be required by the Monetary Authority to subscribe for the Bonds which have not otherwise been subscribed pursuant to valid tenders. |
| Settlement | Settlement will be effected on the first business day immediately following the relevant tender day. |
| Repayment | The Bonds will be redeemed at par on their respective maturity dates. The HKSAR Government may redeem any issue of the Bonds before its maturity date at a price announced in advance of the redemption. |
| Status | The Bonds will be issued under the Loans Ordinance (Chapter 61 of the Laws of Hong Kong). The Bonds will constitute direct, unsecured, unconditional and general obligations of the HKSAR Government. The principal amount of the Bonds and all interest and charges thereon will be payable out of the Bond Fund set up under the Public Finance Ordinance (Chapter 2 of the Laws of Hong Kong) for such purpose and if need be, then out of the general revenues and assets of Hong Kong without preference for one over the other by reason of priority of date of issue or otherwise. The Bonds will rank pari passu with all other unsecured indebtedness of the HKSAR Government incurred for the general revenue from time to time outstanding. |
| Legal Title | Legal title to the Bonds is vested in the holder of the securities account, to which the relevant Bonds are credited, maintained with the Monetary Authority. |
| Taxation | The Bonds are exempt from profits tax and stamp duty in Hong Kong. |
| Governing Law | The laws of Hong Kong. |
| Listing | The Stock Exchange of Hong Kong Limited. |
| Secondary Market | Recognized Dealers which are also appointed as Primary Dealers have undertaken to quote bid and offer prices for the Bonds during normal money market hours (9:00 a.m. to 12:00 noon and 2:00 p.m. to 4:00 p.m. Mondays to Fridays, excluding general holidays). |
| Issuing Representative | The Monetary Authority. |
| Paying Representative | The Monetary Authority. |