HKMA to Reopen 7-Year HKSAR Government Bonds for HK$1.25 Billion Tender

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), announced on 5 November 2026 that it will reopen the 7-year institutional Government Bond issue 07GB3302001 under the Infrastructure Bond Programme. The tender, offering an additional HK$1.25 billion of the outstanding bonds, will take place on Wednesday, 11 November 2026, from 9:30 a.m. to 10:30 a.m., with settlement scheduled for Thursday, 12 November 2026.

Bond Details and Indicative Pricing

The reopened bonds, listed under stock code 4201 (HKGB 2.91 3302), will mature on 7 February 2033 and carry a fixed annual coupon rate of 2.91%, payable semi-annually in arrears. On 5 November 2026, the HKMA provided an indicative price of 96.53, corresponding to an annualised yield of 3.563%. Successful bidders will also pay accrued interest of HK$394.64 per HK$50,000 denomination on the settlement date.

Tender Process and Eligibility

The tender is open exclusively to Primary Dealers appointed under the Infrastructure Bond Programme. Applications must be submitted through these dealers, with a minimum bid amount of HK$50,000 or integral multiples thereof. Tender results will be published by 3:00 p.m. on 11 November 2026 on the HKMA website, the Hong Kong Government Bonds website, Bloomberg, and Refinitiv.

Infrastructure Bond Programme Context

The Infrastructure Bond Programme, established in 2024, aims to finance public infrastructure projects through bond issuances. Proceeds from this tender will be credited to the Capital Works Reserve Fund, supporting infrastructure development under the Infrastructure Bond Framework. The original issue of 07GB3302001, tendered on 4 February 2026, attracted HK$10.060 billion in bids for HK$2 billion allotted, achieving a bid-to-cover ratio of 5.03 and an average accepted yield of 2.864%.

Market Implications

The reopening of this bond increases its tradable supply while maintaining its original coupon and maturity terms. The competitive tender will determine the final allocation and pricing, providing a benchmark for market participants. The bonds are fully fungible with the existing issue and are expected to commence trading on the Stock Exchange of Hong Kong shortly after settlement.