Press release

Tender for the re-opening of 5-year Government Bonds under the Institutional Bond Issuance Programme to be held on Thursday, 6 April 2017

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 3-year Government Bonds (Bonds) through the re-opening of existing 5-year Government Bond issue 05GB2002 under the Institutional Bond Issuance Programme will be held on Thursday, 6 April 2017, for settlement on Friday, 7 April 2017.

An additional amount of HK$4.0 billion of the outstanding 5-year Bonds (issue no. 05GB2002) will be on offer.  The Bonds will mature on 5 February 2020 and will carry interest at the rate of 1.06% per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on 27 March 2017 is 100.10 with an annualised yield of 1.028%.

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 <GO>) not later than 3:00 pm on the tender day.

 

Hong Kong Monetary Authority
27 March 2017

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

:

05GB2002 (Re-open)

Stock code

:

4225 (HKGB 1.06 2002)

Tender Date and Time

:

Thursday, 6 April 2017
9:30 am to 10:30 am

Issue and Settlement Date for tender amount

:

Friday, 7 April 2017

Amount on Offer

:

HK$4.0 billion

Maturity              

:

3 years

Remaining Maturity

:

Approximately 2.83 years

Maturity Date

:

5 February 2020

Interest Rate    

:

1.06% p.a. payable semi-annually in arrears

Interest Payment Dates 

:

7 August 2017
5 February 2018
6 August 2018
8 February 2019
5 August 2019
5 February 2020

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 April 2017) for the tender amount is                          HK$87.12 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 05GB2002 (Stock code: 4225) listed on the Stock Exchange of Hong Kong.

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

Yield-to-Maturity

Price

Yield-to-Maturity

Price

0.028

102.92

1.028

100.10

0.078

102.78

1.078

99.96

0.128

102.63

1.128

99.82

0.178

102.49

1.178

99.68

0.228

102.35

1.228

99.54

0.278

102.21

1.278

99.41

0.328

102.06

1.328

99.27

0.378

101.92

1.378

99.13

0.428

101.78

1.428

99.00

0.478

101.64

1.478

98.86

0.528

101.50

1.528

98.72

0.578

101.35

1.578

98.59

0.628

101.21

1.628

98.45

0.678

101.07

1.678

98.32

0.728

100.93

1.728

98.18

0.778

100.79

1.778

98.05

0.828

100.65

1.828

97.91

0.878

100.51

1.878

97.78

0.928

100.37

1.928

97.64

0.978

100.23

1.978

97.51

1.028

100.10

2.028

97.37

 

* 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 March 2017