HKMA Tendering 1-Year HONIA-indexed Floating Rate Notes
The Hong Kong Monetary Authority (HKMA) is facilitating a tender for 1-year HONIA-indexed Floating Rate Notes (Notes) under the Institutional Bond Issuance Programme. The tender is set for August 14, 2024, with settlement on August 15, 2024, per the announcement by the Hong Kong Monetary Authority.
Details of the Tender
Here are the key details of the tender:
- A total of HK$1.5 billion worth of 1-year Notes will be tendered.
- The Notes will mature on August 15, 2025, with interest indexed to HONIA.
- Interest will be payable quarterly in arrears.
- The tender is exclusive to Recognized Dealers appointed as Primary Dealers.
Application Process
- Interested parties can apply for the Notes through Primary Dealers listed on the Hong Kong Government Bonds website.
- Each tender application must be at least HK$50,000 or integral multiples thereof.
- Tender results will be published on various platforms by 3:00 pm on the tender day.
Key Information
Here is the key information regarding the tender:
- Issue Number: 01GH2508
- Stock Code: 4282 (HKGB FRN 2508)
- Tender Date and Time: August 14, 2024, 9:30 am to 10:30 am
- Settlement Date: August 15, 2024
- Amount on Offer: HK$1.5 billion
- Issue Price: At par
- Maturity: 1 year
- Maturity Date: August 15, 2025
- Interest Rate: Indexed to HONIA, subject to a minimum of 0% per interest period
Background and Significance
The issuance of these Notes forms part of the HKMA’s strategy to boost the liquidity of the local bond market. By linking the interest rate to HONIA, the HKMA aims to offer a stable and transparent benchmark reflecting the actual borrowing costs in the overnight interbank market. This move is likely to appeal to institutional investors and bolster confidence in the Hong Kong bond market.
For further details, you can visit the official Hong Kong Monetary Authority website.
Hot Take: Stay Informed
Keep an eye on the HKMA’s tender for 1-year HONIA-indexed Floating Rate Notes to seize potential opportunities in the bond market. Stay informed and explore the benefits of this unique offering to enhance your investment portfolio and contribute to the growth of the market.
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