Tony Kim
Aug 06, 2026 09:02
HKMA declares HK$1 billion tender for 10-year HKSAR bonds reopening on Aug 12, 2026, with a 3.459% yield and three.17% annual coupon.
The Hong Kong Financial Authority (HKMA) introduced it should reopen its 10-year Hong Kong Particular Administrative Area (HKSAR) Institutional Authorities Bonds (concern 10GB3507001) for tender on Wednesday, August 12, 2026. This re-opening, a part of the Infrastructure Bond Programme, will supply a further HK$1 billion of the bonds, which carry an annual coupon charge of three.17% and can mature on July 24, 2035.
The bonds are priced with an indicative yield of three.459% as of August 6, 2026, and an indicative worth of HK$98.01. The public sale might be open solely to Major Sellers below the Infrastructure Bond Programme, and outcomes might be printed by 3:00 pm on the tender day throughout a number of platforms, together with the HKMA web site and Bloomberg.
Every aggressive tender should be for a minimal denomination of HK$50,000 or multiples thereof. Profitable bidders pays accrued curiosity of HK$86.85 per HK$50,000 denomination upon settlement on August 13, 2026.
Reopening Technique Displays Market Liquidity Objectives
This re-opening continues the HKMA’s ongoing technique of constructing liquidity and benchmarks within the fixed-income market by focused bond issuance. A current reopening of the identical bond collection on June 24, 2026, supplied HK$1.25 billion with a mean tender worth of HK$99.87. These re-openings assist consolidate excellent quantities, enhancing buying and selling liquidity for institutional traders.
Underneath the Infrastructure Bond Programme, proceeds from the bond issuance are allotted to fund infrastructure initiatives outlined below the programme’s framework. This aligns with the HKSAR Authorities’s broader targets of deepening the native bond market and financing sustainable improvement initiatives.
Key Particulars for Traders
The bonds pays semi-annual curiosity on January 24 and July 24 annually, with the following fee due January 24, 2027. As soon as issued, the bonds might be fungible with beforehand issued 10GB3507001 bonds, permitting seamless buying and selling on the secondary market. The inventory code for the bonds is 4294 (HKGB 3.17 3507).
Traders searching for participation should submit bids through Major Sellers listed on the Hong Kong Authorities Bonds web site. Tendering will happen between 9:30 am and 10:30 am on August 12, 2026. Bids are anticipated to be aggressive, given the current demand noticed within the June 24 reopening.
Outlook for HKSAR Bond Program
The HKSAR Authorities’s bond issuance technique, together with each new points and re-openings, has been pivotal in establishing benchmarks and attracting institutional capital. The ten-year bond collection is especially important given its function in anchoring the yield curve for long-term HKD debt.
Whereas the worldwide fixed-income market faces headwinds from fluctuating rates of interest, the yield of three.459% stays aggressive for high-grade sovereign debt. Traders might discover the semi-annual coupon funds and secure authorities backing engaging amid persevering with macroeconomic uncertainties.
The tender outcomes, anticipated on August 12, will present additional perception into market sentiment and demand for Hong Kong government-backed fixed-income securities.
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