HKMA Declares Outcomes of 3-12 months HKD Authorities Bond Tender

The Hong Kong Financial Authority (HKMA), performing on behalf of the Hong Kong Particular Administrative Area Authorities (HKSAR Authorities), has launched the outcomes for the tender of its 3-year HKD institutional authorities bonds. This tender, a part of the Infrastructure Bond Programme, came about on October 23, 2024, based on the Hong Kong Financial Authority.

Particulars of the Bond Issuance

The HKMA supplied a complete of HK$5.5 billion in 3-year authorities bonds. The bonds, recognized by situation quantity 03GB2710001, attracted important curiosity, with purposes amounting to HK$21.375 billion. This demand resulted in a bid-to-cover ratio of three.89, indicating sturdy investor curiosity.

The typical value accepted for these bonds was 99.89, translating to an annualized yield of two.952%. The bottom value accepted was 99.75, with a yield of three.000%. The typical tender value stood at 99.30, leading to a yield of three.160%.

Key Dates and Monetary Particulars

The bonds, carrying a coupon charge of two.89%, have a difficulty and settlement date of October 24, 2024, and can mature on October 25, 2027. The inventory code for these bonds is 4283 (HKGB 2.89 2710).

A professional-rata ratio of roughly 99% was utilized, guaranteeing equitable distribution among the many profitable candidates. The substantial curiosity on this tender displays confidence within the Hong Kong authorities’s monetary devices.

Context and Implications

This bond situation types a part of the broader technique by the HKMA to handle the area’s monetary stability and liquidity. The sturdy demand and favorable yield underscore investor confidence in Hong Kong’s financial outlook regardless of world monetary uncertainties.

Moreover, the profitable tender aligns with the HKSAR Authorities’s targets to assist infrastructure tasks by means of strategic bond points, offering a steady monetary basis for future improvement.

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