Upcoming Tender Announcement 📅
The Hong Kong Monetary Authority (HKMA) has revealed plans for a tender involving 2-year Exchange Fund Notes, set for November 22, 2024. This effort is aimed at rolling over an existing set of notes that are due to mature on the same date, according to a recent announcement from the authority.
Tender Overview 💰
In total, the HKMA will offer HK$1,200 million worth of 2-year Notes. Of this, HK$5 million is designated for non-competitive tender bids made available to the public via the Hong Kong Securities Clearing Company Limited (HKSCC). Should any of this amount remain unsubscribed, it will be shifted to the competitive tender, which has a starting amount set at HK$1,195 million. The notes will reach maturity on November 25, 2026, and carry an annual interest rate of 3.19%, which is disbursed semi-annually.
How to Participate 📝
Individuals interested in placing non-competitive bids can do so through Stock Exchange Participants, Brokers, or directly through the HKSCC if they have Investor Accounts with the Central Clearing and Settlement System (CCASS). On the other hand, competitive bids need to be filed via any of the HKMA-approved Eligible Market Makers. It’s important to note that all bids must be made in increments of HK$50,000 for both types of tenders.
Results Notification 📊
The outcomes of the tender will be displayed on the HKMA’s official website, the Refinitiv screen (HKMAOOE), and Bloomberg. For those submitting non-competitive bids via HKSCC, the results can be retrieved through brokers or directly from their CCASS terminal.
Further Details 🔍
For additional insights regarding the tender, including information about Eligible Market Makers, it is advisable to visit the HKMA’s official website or refer to the Information Memorandum. Trading on the Stock Exchange of Hong Kong is expected to commence on November 26, 2024.
Hot Take 🔥
This year looks promising for market participants, especially those interested in the upcoming tender by HKMA. The ability to secure a fixed interest rate over a two-year period amidst fluctuating market conditions can be compelling for many. Understanding the intricacies of the bidding process and qualifying for either competitive or non-competitive bids is crucial, ensuring you are well-prepared to engage in this tender opportunity with confidence.
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