HKMA to hold tender for 2-year exchange fund notes

A total of $1.2b in two-year notes will be offered.

The Hong Kong Monetary Authority (HKMA) will conduct a tender for two-year Exchange Fund Notes on 21 August, with settlement on 22 August. This issuance will replace maturing two-year notes.

A total of $1.2b in two-year notes will be offered. Of this amount, HK$5 million will be allocated for non-competitive tenders available to the public through Hong Kong Securities Clearing Company Limited (HKSCC). Should the non-competitive portion be under-subscribed, any remaining amount will be added to the competitive tender portion, initially set at $1.195b. The notes will mature on 24 August 2026, and will offer an interest rate of 2.77% per annum, payable semi-annually.

Members of the public interested in non-competitive tenders can submit applications via Stock Exchange Participants/Brokers or directly through HKSCC if they hold Investor Accounts with the Central Clearing and Settlement System (CCASS). 

Competitive tenders must be submitted through Eligible Market Makers listed on the HKMA’s website at www.hkma.gov.hk. Each tender must be for HK$50,000 or multiples thereof, applicable to both competitive and non-competitive tenders.

Tender results will be available on the HKMA website, Refinitiv screen (HKMAOOE), and Bloomberg. Non-competitive results can also be accessed through Stock Exchange Participants/Brokers or the CCASS terminal and phone system for CCASS Investor Account holders.