Alvin Lang
Feb 11, 2025 08:09
The Hong Kong Financial Authority will maintain a young for the reopening of 2-year RMB authorities bonds beneath the Infrastructure Bond Programme on February 13, 2025.
The Hong Kong Financial Authority (HKMA) has introduced the reopening of 2-year Renminbi (RMB) authorities bonds, scheduled for tender on February 13, 2025. This transfer is a part of the Infrastructure Bond Programme managed by the Hong Kong Particular Administrative Area Authorities. The reopening targets the 2-year Authorities Bond subject 02GB2611001, with settlement anticipated on February 17, 2025, in accordance with the Hong Kong Financial Authority.
Tender Particulars
The HKMA is providing a further RMB1.5 billion of the excellent bonds, which is able to mature on November 18, 2026. The bonds carry an rate of interest of two.04% each year, payable semi-annually. The indicative pricing for these bonds, as of February 7, 2025, is 99.89, reflecting a semi-annualized yield of two.103%.
Participation within the tender is restricted to Major Sellers beneath the Infrastructure Bond Programme. events can apply by way of these sellers, with every tender requiring a minimal quantity of RMB50,000 or its multiples. The outcomes of the tender will probably be printed throughout varied platforms, together with the HKMA’s web site, the Hong Kong Authorities Bonds web site, Bloomberg, and Refinitiv, by 3:00 pm on the tender day.
Bond Specs
The bonds, recognized by inventory code 84585 (HKGB2.04 2611-R), will see their first curiosity fee on Could 18, 2025. Funds will proceed semi-annually till the maturity date. The accrued curiosity payable by profitable bidders on the difficulty date will probably be RMB254.30 per RMB50,000 denomination.
The bonds are a part of the institutional section of the Infrastructure Bond Programme, with proceeds directed in the direction of infrastructure initiatives as outlined within the Infrastructure Bond Framework. The bonds are fungible with current points listed on the Inventory Change of Hong Kong.
Context and Implications
This tender is a part of a broader technique by the HKMA to bolster infrastructure financing by way of structured bond choices. The reopening not solely gives buyers with steady returns in a low-interest setting but additionally helps crucial infrastructure initiatives in Hong Kong. As international financial circumstances stay risky, such devices supply each safety and development potential for institutional buyers.
Market observers will probably be keenly watching the response to this bond providing, as it could set a precedent for future issuances beneath the Infrastructure Bond Programme. The success of this tender might result in elevated investor confidence and additional participation in Hong Kong’s authorities bond market.
Picture supply: Shutterstock
