Tony Kim
Aug 06, 2026 09:02
HKMA publicizes HK$1 billion tender for 10-year HKSAR bonds reopening on Aug 12, 2026, with a 3.459% yield and three.17% annual coupon.
The Hong Kong Financial Authority (HKMA) introduced it is going to reopen its 10-year Hong Kong Particular Administrative Area (HKSAR) Institutional Authorities Bonds (subject 10GB3507001) for tender on Wednesday, August 12, 2026. This re-opening, a part of the Infrastructure Bond Programme, will provide an extra HK$1 billion of the bonds, which carry an annual coupon charge of three.17% and can mature on July 24, 2035.
The bonds are priced with an indicative yield of three.459% as of August 6, 2026, and an indicative worth of HK$98.01. The public sale can be open solely to Major Sellers beneath the Infrastructure Bond Programme, and outcomes can be revealed by 3:00 pm on the tender day throughout a number of platforms, together with the HKMA web site and Bloomberg.
Every aggressive tender should be for a minimal denomination of HK$50,000 or multiples thereof. Profitable bidders can pay accrued curiosity of HK$86.85 per HK$50,000 denomination upon settlement on August 13, 2026.
Reopening Technique Displays Market Liquidity Targets
This re-opening continues the HKMA’s ongoing technique of constructing liquidity and benchmarks within the fixed-income market by way of focused bond issuance. A latest reopening of the identical bond sequence on June 24, 2026, provided HK$1.25 billion with a median tender worth of HK$99.87. These re-openings assist consolidate excellent quantities, enhancing buying and selling liquidity for institutional traders.
Below the Infrastructure Bond Programme, proceeds from the bond issuance are allotted to fund infrastructure tasks outlined beneath the programme’s framework. This aligns with the HKSAR Authorities’s broader aims of deepening the native bond market and financing sustainable growth tasks.
Key Particulars for Buyers
The bonds can pay semi-annual curiosity on January 24 and July 24 every year, with the subsequent cost due January 24, 2027. As soon as issued, the bonds can be fungible with beforehand issued 10GB3507001 bonds, permitting seamless buying and selling on the secondary market. The inventory code for the bonds is 4294 (HKGB 3.17 3507).
Buyers in search of participation should submit bids by way of Major Sellers listed on the Hong Kong Authorities Bonds web site. Tendering will happen between 9:30 am and 10:30 am on August 12, 2026. Bids are anticipated to be aggressive, given the latest demand noticed within the June 24 reopening.
Outlook for HKSAR Bond Program
The HKSAR Authorities’s bond issuance technique, together with each new points and re-openings, has been pivotal in establishing benchmarks and attracting institutional capital. The ten-year bond sequence is especially vital given its position in anchoring the yield curve for long-term HKD debt.
Whereas the worldwide fixed-income market faces headwinds from fluctuating rates of interest, the yield of three.459% stays aggressive for high-grade sovereign debt. Buyers could discover the semi-annual coupon funds and steady authorities backing engaging amid persevering with macroeconomic uncertainties.
The tender outcomes, anticipated on August 12, will present additional perception into market sentiment and demand for Hong Kong government-backed fixed-income securities.
Picture supply: Shutterstock
