Tender for re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme to be held on January 18


Hong Kong (HKSAR) - The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (January 9) that a tender of 10-yearGovernment Bonds (Bonds) through the re-opening of existing 10-year Government Bond issue 10GB2601 under the Institutional Bond Issuance Programme will be held on January 18 (Wednesday), for settlement on January 19 (Thursday).
 
     An additional amount of $1.2 billion of the outstanding 10-year Bonds (issue no. 10GB2601) will be on offer. The Bonds will mature on January 21, 2026 and will carry interest at the rate of 1.68% per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on January 9, 2017 is 99.60 with an annualised yield of 1.736%.
 
     Under the Institutional Bond Issuance Programme, tender is open only to Recognized Dealers which are appointed as Primary Dealers.  Anyone wishing to apply for the Bonds on offer can do so through any of the Primary Dealers on the current published list, which can be obtained from the Government Bond Programme's website at http://www.hkgb.gov.hk" target="_blank">www.hkgb.gov.hk.

Each tender must be for an amount of $50,000 or integral multiples thereof.
      
     Tender results will be published on the HKMA's website, the Government Bond Programme's website, the Reuters screen (HKGBINDEX), and Bloomberg (GBHK <GO>) not later than 3pm on the tender day.
 

HKSAR Government Institutional Bond Issuance Programme Tender Information
-------------------------------------------------------------------------------------

     Tender information of re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme:
  
Issue Number : 10GB2601 (Re-open)
 
Stock Code : 4230 (HKGB 1.68 2601)
 
Tender Date and Time : January 18, 2017 (Wednesday)
9.30am to 10.30am
 
Issue and Settlement Date for Tender Amount
 
: January 19, 2017 (Thursday)
Amount on Offer
 
: $1.2 billion
Maturity              
 
: 10 years
Remaining Maturity : Approximately 9.01 years
 
Maturity Date : January 21, 2026
 
Interest Rate : 1.68% p.a. payable semi-annually in arrears
 
Interest Payment Dates : January 23, 2017
July 21, 2017
January 22, 2018
July 23, 2018
January 21, 2019
July 22, 2019
January 21, 2020
July 21, 2020
January 21, 2021
July 21, 2021
January 21, 2022
July 21, 2022
January 25, 2023
July 21, 2023
January 22, 2024
July 22, 2024
January 21, 2025
July 21, 2025
January 21, 2026
 
Method of Tender : Competitive tender
 
Tender Amount : Each competitive tender must be for an amount of $50,000 or integral multiples thereof.  Any tender applications for the Bonds must be submitted through a Primary Dealer on the current published list.
 
The accrued interest to be paid by successful bidders on the issue date (January 19, 2017) for the tender amount is  $418.85 per minimum denomination of $50,000.
 
(The accrued interest to be paid for tender amount exceeding $50,000 may not be exactly equal to the figures calculated from the accrued interest per minimum denomination of $50,000 due to rounding).
 
Other Details : Please see Information Memorandum available on the Government Bond Programme's website at http://www.hkgb.gov.hk" target="_blank">www.hkgb.gov.hk or approach Primary Dealers.
 
Expected Commencement Date of Dealing on
the Stock Exchange
of Hong Kong Limited
: The tender amount is fully fungible with the existing 10GB2601 (Stock code: 4230) listed on the Stock Exchange of Hong Kong.

 
 
     Price/Yield Table of the re-opening Government Bonds at tender for reference* only:
 
Yield-to-Maturity Price Yield-to-Maturity Price
0.736 108.22 1.736 99.60
0.786 107.77 1.786 99.19
0.836 107.32 1.836 98.78
0.886 106.87 1.886 98.37
0.936 106.43 1.936 97.97
0.986 105.99 1.986 97.57
1.036 105.54 2.036 97.17
1.086 105.11 2.086 96.77
1.136 104.67 2.136 96.37
1.186 104.24 2.186 95.98
1.236 103.80 2.236 95.59
1.286 103.37 2.286 95.20
1.336 102.95 2.336 94.81
1.386 102.52 2.386 94.42
1.436 102.10 2.436 94.04
1.486 101.68 2.486 93.65
1.536 101.26 2.536 93.27
1.586 100.84 2.586 92.89
1.636 100.42 2.636 92.51
1.686 100.01 2.686 92.14
1.736 99.60 2.736 91.76
 
* Disclaimer
 
     The information provided here is for reference only. Although extreme care has been taken to ensure that the information provided is accurate and up-to-date, the HKMA does not warrant that all, or any part of, the information provided is accurate in all respects. You are encouraged to conduct your own enquiries to verify any particular piece of information provided on it.  The HKMA shall not be liable for any loss or damage suffered as a result of any use or reliance on any of the information provided here.



Published on: 2017-01-09

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