The Hong Kong Monetary Authority (HKMA) has announced the results of the recent tender for 5-year Hong Kong Dollar (HKD) HKSAR Institutional Government Bonds. Acting on behalf of the Hong Kong Special Administrative Region Government, the HKMA held the tender on December 4, 2024, as part of its Infrastructure Bond Programme.

Strong Demand for Bonds

The tender saw significant interest, with applications totaling HK$9.734 billion against an offered amount of HK$3.0 billion. This resulted in a bid-to-cover ratio of 3.24, indicating robust demand from institutional investors. The average price accepted for the bonds was 100.35, translating to an annualized yield of 3.179%.

Details of the Issue

The bonds, identified by issue number 05GB2912001 and stock code 4284 (HKGB 3.23 2912), have a coupon rate of 3.23%. They are set to be issued and settled on December 5, 2024, with a maturity date of December 5, 2029. The lowest price accepted was 100.03, resulting in a yield of 3.249%, while the average tender price was 99.15, equating to a yield of 3.445%.

The pro-rata ratio, representing the proportion of bonds allocated to applicants, was approximately 32%.

Significance of the Results

The successful tender highlights the continued confidence in Hong Kong’s financial stability and its attractiveness as a destination for institutional investment. The competitive yields offered by the bonds reflect favorable market conditions and investor sentiment towards long-term government securities.

For more details, visit the Hong Kong Monetary Authority.

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