Darius Baruo
Feb 20, 2025 09:59
The Hong Kong Monetary Authority announced the successful reopening of 3-year HKD HKSAR Government Bonds, attracting HK$9.32 billion in bids against a HK$2 billion issuance.
The Hong Kong Monetary Authority (HKMA) has announced the results of the reopened tender for 3-year Hong Kong Dollar (HKD) HKSAR Institutional Government Bonds. The tender, conducted on February 19, 2025, saw a robust demand, with bids totaling HK$9.32 billion, significantly surpassing the HK$2 billion on offer.
High Demand and Competitive Bidding
The bid-to-cover ratio for this reopening was an impressive 4.66, indicating strong investor interest in the bonds. The average price accepted was 98.80, which corresponds to an annualized yield of 3.391%. This yield reflects the market’s positive sentiment towards the stability and creditworthiness of Hong Kong’s government debt.
Details of the Bond Issue
The bonds, identified by the issue number 03GB2710001, carry a coupon rate of 2.89% and will mature on October 25, 2027. The issue and settlement date for the bonds is set for February 20, 2025. This reopening is part of the ongoing efforts under the Infrastructure Bond Programme.
According to the HKMA, the lowest price accepted in the tender was 98.65, yielding 3.450%, while the average tender price stood at 98.42, yielding 3.542%. The pro-rata ratio was approximately 80%, reflecting a proportionate distribution of the bonds among successful bidders.
Implications for Investors
The strong demand for these bonds underscores investor confidence in the economic stability of Hong Kong. The successful issuance of these government bonds not only supports infrastructure development but also provides a reliable investment avenue for institutional investors.
The reopening of these bonds is a strategic move by the HKMA to manage public debt efficiently while catering to the demand for secure investment options. The results of this tender highlight the continued attractiveness of Hong Kong government bonds in the global financial market.
For more detailed information, please refer to the official announcement by the Hong Kong Monetary Authority.
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