Press release

Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 14 January 2015

The following is issued by the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (Monday) that a tender of 10-year Government Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2408 under the Institutional Bond Issuance Programme will be held on Wednesday, 14 January 2015, for settlement on Thursday, 15 January 2015.

An additional amount of HK$2.0 billion of the outstanding 10-year Bonds (issue no. 10GB2408) will be on offer. The Bonds will mature on 7 August 2024 and will carry interest at the rate of 2.22% per annum payable semi-annually in arrears. The Bonds Fixings on 5 January 2015 is 101.98 with an annualised yield of 2.003%.

Under the Institutional Bond Issuance Programme, tender is open only to Recognized Dealers which are appointed as Primary Dealers. Anyone wishing to apply for the Bonds on offer can do so through any of the Primary Dealers on the current published list, which can be obtained from the Government Bond Programme’s website at http://www.hkgb.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof.

Tender results will be published on the HKMA’s website, the Government Bond Programme’s website, the Reuters screen (HKGBINDEX), and Bloomberg (GBHK ) not later than 3:00 pm on the tender day.

Hong Kong Monetary Authority
5 January 2015

HKSAR GOVERNMENT INSTITUTIONAL BOND ISSUANCE PROGRAMME TENDER INFORMATION
Tender information of re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme:-

Issue Number

:

10GB2408 (Re-open)

Stock code

:

4221 (HKGB 2.22 2408)

Tender Date and Time

:

Wednesday, 14 January 2015
9:30 am to 10:30 am

Issue and Settlement Date

:

Thursday, 15 January 2015

Amount on Offer

:

HK$2.0 billion

Maturity

:

10 years

Remaining Maturity

:

Approximately 9.57 years

Maturity Date

:

7 August 2024

Interest Rate

:

2.22% p.a. payable semi-annually in arrears

Interest Payment Dates

:

9 February 2015
7 August 2015
11 February 2016
8 August 2016
7 February 2017
7 August 2017
7 February 2018
7 August 2018
8 February 2019
7 August 2019
7 February 2020
7 August 2020
8 February 2021
9 August 2021
7 February 2022
8 August 2022
7 February 2023
7 August 2023
7 February 2024
7 August 2024

Method of Tender

:

Competitive tender

Tender Amount

:

Each competitive tender must be for an amount of HK$50,000 or integral multiples thereof.  Any tender applications for the Bonds must be submitted through a Primary Dealer on the current published list.

The accrued interest to be paid by successful bidders on the issue date (15 January 2015) for the tender amount is HK$489.62 per minimum denomination of HK$50,000.

(The accrued interest to be paid for tender amount exceeding HK$50,000 may not be exactly equal to the figures calculated from the accrued interest per minimum denomination of HK$50,000 due to rounding).

Other details 

:

Please see Information Memorandum available on the Government Bond Programme’s website at http://www.hkgb.gov.hk or approach Primary Dealers.

Expected commencement date of dealing on
the Stock Exchange
of Hong Kong Limited

:

The tender amount is fully fungible with the existing 10GB2408 (Stock code: 4221) listed on the Stock Exchange of Hong Kong.

Price/Yield Table of the new Government Bonds at tender for reference* only :-

Yield-to-Maturity

Price

Yield-to-Maturity

Price

1.003

111.09

2.003

101.97

1.053

110.61

2.053

101.53

1.103

110.14

2.103

101.10

1.153

109.66

2.153

100.67

1.203

109.19

2.203

100.25

1.253

108.72

2.253

99.82

1.303

108.26

2.303

99.40

1.353

107.79

2.353

98.98

1.403

107.33

2.403

98.56

1.453

106.87

2.453

98.15

1.503

106.41

2.503

97.74

1.553

105.96

2.553

97.32

1.603

105.51

2.603

96.91

1.653

105.06

2.653

96.51

1.703

104.61

2.703

96.10

1.753

104.16

2.753

95.70

1.803

103.72

2.803

95.30

1.853

103.28

2.853

94.90

1.903

102.84

2.903

94.50

1.953

102.40

2.953

94.11

2.003

101.97

3.003

93.71

* Disclaimer

The information provided here is for reference only. Although extreme care has been taken to ensure that the information provided is accurate and up-to-date, the HKMA does not warrant that all, or any part of, the information provided is accurate in all respects. You are encouraged to conduct your own enquiries to verify any particular piece of information provided on it. The HKMA shall not be liable for any loss or damage suffered as a result of any use or reliance on any of the information provided here.

Hong Kong Monetary Authority
5 January 2015