Press release

Tender for the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on Wednesday, 6 July 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 (Monday) that a tender of 10-year Government Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2601 under the Institutional Bond Issuance Programme will be held on Wednesday, 6 July 2016, for settlement on Thursday, 7 July 2016.

An additional amount of HK$1.2 billion of the outstanding 10-year Bonds (issue no. 10GB2601) will be on offer. The Bonds will mature on 21 January 2026 and will carry interest at the rate of 1.68% per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on 27 June 2016 is 105.80 with an annualised yield of 1.046%.

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
27 June 2016

 

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

:

10GB2601 (Re-open)

Stock code

:

4230 (HKGB 1.68 2601)

Tender Date and Time

:

Wednesday, 6 July 2016
9:30 am to 10:30 am

Issue and Settlement Date for tender amount

:

Thursday, 7 July 2016

Amount on Offer

:

HK$1.2 billion

Maturity              

:

10 years

Remaining Maturity

:

Approximately 9.55 years

Maturity Date

:

21 January 2026

Interest Rate    

:

1.68% p.a. payable semi-annually in arrears

Interest Payment Dates 

:

21 July 2016
23 January 2017
21 July 2017
22 January 2018
23 July 2018
21 January 2019
22 July 2019
21 January 2020
21 July 2020
21 January 2021
21 July 2021
21 January 2022
21 July 2022
25 January 2023
21 July 2023
22 January 2024
22 July 2024
21 January 2025
21 July 2025
21 January 2026

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 (7 July 2016) for the tender amount is HK$386.63 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 10GB2601 (Stock code: 4230) 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
0.046 115.55 1.046 105.77
0.096 115.04 1.096 105.30
0.146 114.53 1.146 104.84
0.196 114.02 1.196 104.38
0.246 113.51 1.246 103.93
0.296 113.01 1.296 103.47
0.346 112.51 1.346 103.02
0.396 112.01 1.396 102.57
0.446 111.52 1.446 102.12
0.496 111.02 1.496 101.68
0.546 110.53 1.546 101.24
0.596 110.05 1.596 100.80
0.646 109.56 1.646 100.36
0.696 109.08 1.696 99.92
0.746 108.60 1.746 99.49
0.796 108.12 1.796 99.06
0.846 107.64 1.846 98.63
0.896 107.17 1.896 98.20
0.946 106.70 1.946 97.77
0.996 106.23 1.996 97.35
1.046 105.77 2.046 96.93

* 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
27 June 2016