Hong Kong Monetary Authority Announces Tender for 2-Year Exchange Fund Notes

The Hong Kong Monetary Authority (HKMA) has announced an upcoming tender for 2-year Exchange Fund Notes, scheduled for November 22, 2024. This tender, intended for settlement on November 25, 2024, aims to roll over an existing issue of notes maturing on the same day, according to the Hong Kong Monetary Authority.

Tender Details

A total of HK$1,200 million in 2-year Notes will be offered, with HK$5 million reserved for non-competitive tender bids accessible to the public through the Hong Kong Securities Clearing Company Limited (HKSCC). Any non-subscribed amount from this portion will be added to the competitive tender, initially set at HK$1,195 million. The notes, maturing on November 25, 2026, carry an annual interest rate of 3.19%, paid semi-annually.

Participation and Submission Process

Public participants wishing to submit non-competitive bids can do so via Stock Exchange Participants or Brokers, or directly through HKSCC for those holding Investor Accounts with the Central Clearing and Settlement System (CCASS). Competitive bids must be submitted through any of the HKMA-appointed Eligible Market Makers. Each tender must be in HK$50,000 increments, applicable to both competitive and non-competitive tenders.

Publication of Results

The results of the tender will be available on the HKMA’s website, the Refinitiv screen (HKMAOOE), and Bloomberg. Individuals submitting non-competitive bids through HKSCC can also access results via their brokers or directly through the CCASS terminal.

Additional Information

For further details about the tender, including the list of Eligible Market Makers, interested parties are encouraged to visit the HKMA’s official website or consult the Information Memorandum. The anticipated start date for trading on the Stock Exchange of Hong Kong is November 26, 2024.

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