Press release

Tender for the re-opening of 5-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 13 April 2016

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 (Friday) that a tender of 3-year Government Bonds (Bonds) through the re-opening of existing 5-year Government Bond issue 05GB1902 under the Institutional Bond Issuance Programme will be held on Wednesday, 13 April 2016, for settlement on Thursday, 14 April 2016.

An additional amount of HK$4.0 billion of the outstanding 5-year Bonds (issue no. 05GB1902) will be on offer. The Bonds will mature on 20 February 2019 and will carry interest at the rate of 1.47% per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on 1 April 2016 is 102.16 with an annualised yield of 0.716%.

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
1 April 2016

 

HKSAR GOVERNMENT INSTITUTIONAL BOND ISSUANCE PROGRAMME TENDER INFORMATION
Tender information of re-opening of 5-year Government Bonds under the Institutional Bond Issuance Programme:-

Issue Number

:

05GB1902 (Re-open)

Stock code

:

4219 (HKGB 1.47 1902)

Tender Date and Time

:

Wednesday, 13 April 2016
9:30 am to 10:30 am

Issue and Settlement Date for tender amount

:

Thursday, 14 April 2016

Amount on Offer

:

HK$4.0 billion

Maturity              

:

3 years

Remaining Maturity

:

Approximately 2.85 years

Maturity Date

:

20 February 2019

Interest Rate    

:

1.47% p.a. payable semi-annually in arrears

Interest Payment Dates 

:

22 August 2016
20 February 2017
21 August 2017
20 February 2018
20 August 2018
20 February 2019

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 (14 April 2016) for the tender amount is HK$104.71 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 05GB1902 (Stock code: 4219) 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

-0.284

105.03

0.716

102.13

-0.234

104.88

0.766

101.99

-0.184

104.73

0.816

101.84

-0.134

104.59

0.866

101.70

-0.084

104.44

0.916

101.56

-0.034

104.29

0.966

101.42

0.016

104.15

1.016

101.28

0.066

104.00

1.066

101.14

0.116

103.85

1.116

101.00

0.166

103.71

1.166

100.86

0.216

103.56

1.216

100.72

0.266

103.42

1.266

100.58

0.316

103.27

1.316

100.44

0.366

103.13

1.366

100.30

0.416

102.99

1.416

100.16

0.466

102.84

1.466

100.03

0.516

102.70

1.516

99.89

0.566

102.56

1.566

99.75

0.616

102.41

1.616

99.61

0.666

102.27

1.666

99.47

0.716

102.13

1.716

99.34

* 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
1 April 2016