Hong Kong Monetary Authority to Reopen 5-Year Government Bonds in June 2025

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has announced a tender for the re-opening of 5-year Hong Kong Dollar (HKD) Government Bonds. This tender, scheduled for June 25, 2025, marks a significant move in the region's financial landscape, aimed at reinforcing the Infrastructure Bond Programme.

Details of the Bond Offering

The upcoming tender will offer an additional HK$1.25 billion of the outstanding 5-year Bonds, identified by issue number 05GB3005002. These Bonds will mature on May 15, 2030, and will carry a fixed interest rate of 2.70% per annum, payable semi-annually. On June 19, 2025, the indicative pricing for these Bonds was set at 101.75, reflecting an annualized yield of 2.334%.

Eligibility and Application Process

Participation in the tender is restricted to Primary Dealers appointed under the Infrastructure Bond Programme. Interested parties must apply through these dealers, with each tender requiring a minimum amount of HK$50,000 or its multiples. Detailed information can be accessed through the Hong Kong Government Bonds website.

Publication and Settlement

Results of the tender will be disseminated through various platforms, including the HKMA’s website, Bloomberg, and Refinitiv, by no later than 3:00 pm on the tender day. The settlement date for these Bonds is set for June 26, 2025.

Market Context and Proceeds Utilization

This bond issuance is part of the institutional segment of the Infrastructure Bond Programme. The proceeds are earmarked for investment in infrastructure projects, aligning with the framework outlined on the Hong Kong Government Bonds website. This strategic financial maneuver is expected to bolster the region's infrastructure development initiatives.

For further details, interested parties can visit the Hong Kong Monetary Authority website.