Hong Kong Monetary Authority Unveils Bond Issuance Schedule and Appoints Primary Dealers
Iris Coleman Oct 22, 2024 00:27
The Hong Kong Monetary Authority has announced a tentative schedule for government bond issuance and appointed primary dealers for its Infrastructure and Sustainable Bond Programs.
The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has released a tentative issuance schedule for government bonds. According to the HKMA, this schedule pertains to bonds issued under the Infrastructure Bond Programme (IBP) and the Government Sustainable Bond Programme (GSBP) for the six-month period from October 2024 to March 2025.
Issuance Details
The government bonds, denominated in Hong Kong dollars (HKD) and Renminbi (RMB), will be offered through competitive tendering. The schedule includes information on the tentative tenors, tender dates, issuance sizes, issue dates, and methods of issuance. Additional details are available in the Information Memorandum, which will be published on the Hong Kong Government Bonds website.
Primary Dealers Appointment
In a related development, the HKMA has appointed 13 financial institutions as Primary Dealers for the institutional parts of the IBP and GSBP. These dealers will assist in implementing the bond tenders and are tasked with providing two-way bid-and-offer quotations in the secondary market. The Primary Dealers will serve a term of two years, from October 2024 to September 2026.
Adjustments and Market Conditions
It's important to note that the issuance schedule is tentative and subject to adjustments based on market conditions. The HKMA may issue a revised schedule if necessary. Specific details of individual bond issues, including the use of proceeds, will be confirmed and announced in tender notices before the scheduled tender dates.
Transition from Existing Programmes
The 2024-25 Budget outlines that the IBP and GSBP will gradually replace the existing Government Bond Programme (GBP). Consequently, the publication of the HKD Government bond benchmark yield curve, currently conducted under the GBP, is expected to transition to the IBP and GSBP. Newly issued HKD bonds under these programs will serve as benchmark issues for their respective tenors, replacing the current benchmarks under the GBP.
For more detailed information, refer to the Hong Kong Monetary Authority.
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