Tender for re-opening of 5-year Government Bonds under Institutional Bond Issuance Programme to be held on October 5
******************************************************************************************
The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (September 26) that a tender of 3-year Government Bonds (Bonds) through the re-opening of existing 5-year Government Bond issue 05GB2002 under the Institutional Bond Issuance Programme will be held on October 5 (Wednesday), for settlement on October 6 (Thursday).
An additional amount of HK$4.0 billion of the outstanding 5-year Bonds (issue no. 05GB2002) will be on offer. The Bonds will mature on February 5, 2020 and will carry interest at the rate of 1.06% per annum payable semi-annually in arrears. The Indicative Pricings of the Bonds on September 26, 2016 is 101.60 with an annualised yield of 0.579%.
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 www.hkgb.gov.hk; Each tender must be for an amount of HK$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 5-year Government Bonds under the Institutional Bond Issuance Programme:
| Issue Number | : | 05GB2002 (Re-open) |
| Stock code | : | 4225 (HKGB 1.06 2002) |
| Tender Date and Time | : | October 5, 2016 (Wednesday) 9.30am to 10.30am |
| Issue and Settlement Date for tender amount | : | October 6, 2016 (Thursday) |
| Amount on Offer | : | HK$4.0 billion |
| Maturity | : | 3 years |
| Remaining Maturity | : | Approximately 3.33 years |
| Maturity Date | : | February 5, 2020 |
| Interest Rate | : | 1.06% p.a. payable semi-annually in arrears |
| Interest Payment Dates | : | February 6, 2017 August 7, 2017 February 5, 2018 August 6, 2018 February 8, 2019 August 5, 2019 February 5, 2020 |
| Method of Tender | : | Competitive tender |
| Tender Amount | : | Each competitive tender must be for an amount of HK$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 (October 6, 2016) for the tender amount is HK$90.03 per minimum denomination of HK$50,000. (The accrued interest to be paid for tender amount exceeding HK$50,000 may not be exactly equal to the figures calculated from the accrued interest per minimum denomination of HK$50,000 due to rounding). |
| Other details | : | Please see Information Memorandum available on the Government Bond Programme’s website at 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 05GB2002 (Stock code: 4225) 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 |
| -0.421 | 104.97 | 0.579 | 101.59 |
| -0.371 | 104.80 | 0.629 | 101.42 |
| -0.321 | 104.63 | 0.679 | 101.26 |
| -0.271 | 104.46 | 0.729 | 101.09 |
| -0.221 | 104.28 | 0.779 | 100.93 |
| -0.171 | 104.11 | 0.829 | 100.76 |
| -0.121 | 103.94 | 0.879 | 100.60 |
| -0.071 | 103.77 | 0.929 | 100.44 |
| -0.021 | 103.60 | 0.979 | 100.27 |
| 0.029 | 103.43 | 1.029 | 100.11 |
| 0.079 | 103.26 | 1.079 | 99.95 |
| 0.129 | 103.09 | 1.129 | 99.79 |
| 0.179 | 102.92 | 1.179 | 99.62 |
| 0.229 | 102.76 | 1.229 | 99.46 |
| 0.279 | 102.59 | 1.279 | 99.30 |
| 0.329 | 102.42 | 1.329 | 99.14 |
| 0.379 | 102.25 | 1.379 | 98.98 |
| 0.429 | 102.09 | 1.429 | 98.82 |
| 0.479 | 101.92 | 1.479 | 98.66 |
| 0.529 | 101.75 | 1.529 | 98.50 |
| 0.579 | 101.59 | 1.579 | 98.34 |
* 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.
Ends/Monday, September 26, 2016
Issued at HKT 16:42
Issued at HKT 16:42
NNNN