Hong Kong Monetary Authority to Reopen 3-Year Institutional Government Bonds
Darius Baruo Oct 31, 2025 02:13
Hong Kong Monetary Authority announces tender for reopening 3-year HKD HKSAR Institutional Government Bonds, offering HK$2.25 billion, with settlement set for November 6, 2025.
The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced the reopening of its 3-year HKD Institutional Government Bonds. Scheduled for Wednesday, November 5, 2025, the tender aims to offer an additional HK$2.25 billion of the already issued 3-year bonds, identified as issue number 03GB2804001 under the Infrastructure Bond Programme, with settlement planned for November 6, 2025, according to Hong Kong Monetary Authority.
Details of the Bond Offer
The bonds, which will mature on April 25, 2028, carry an interest rate of 2.76% per annum, payable semi-annually. The indicative pricing as of October 30, 2025, stands at 101.16, translating to an annualized yield of 2.289%. The tender is exclusively open to Primary Dealers appointed under the Infrastructure Bond Programme, with applications required to be made through these dealers. Each application must be in multiples of HK$50,000.
Tender Process and Timeline
The tender will be conducted through a competitive process, with the results expected to be published by 3:00 pm on the tender day through multiple channels including the HKMA’s website, the Hong Kong Government Bonds website, and financial platforms like Bloomberg and Refinitiv. The accrued interest payable by successful bidders on the issue date is calculated at HK$37.81 per minimum denomination of HK$50,000.
Impact and Use of Proceeds
The bonds are part of the institutional segment of the Infrastructure Bond Programme, with proceeds earmarked for investment in infrastructure projects as outlined in the Infrastructure Bond Framework. The bonds are fully fungible with existing issues under the same stock code, 4291, allowing for seamless trading on the Stock Exchange of Hong Kong Limited.
The reopening of these bonds signifies the HKMA's ongoing efforts to support infrastructure development through strategic financial instruments, providing investors with stable, government-backed opportunities amidst evolving market conditions.
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