Hong Kong Monetary Authority Announces Reopening of 20-Year Government Bonds

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has announced the reopening of its 20-year HKD institutional Government Bonds. The tender is scheduled for August 20, 2025, with settlement the following day, according to the Hong Kong Monetary Authority.

Details of the Bond Offering

This reopening involves an additional issuance of HK$0.5 billion for the existing 20-year Government Bond issue, identified as 20GB4503001, under the Infrastructure Bond Programme. These bonds are set to mature on March 6, 2045, and will yield an annual interest rate of 3.99%, paid semi-annually. At the time of announcement, the indicative pricing was set at 106.00 with an annualized yield of 3.593%.

Tender Information

The tender is exclusively open to Primary Dealers appointed under the Infrastructure Bond Programme. Interested parties must apply through these Primary Dealers, listed on the Hong Kong Government Bonds website. Each tender must be for a minimum of HK$50,000 or its multiples. Results will be published on various platforms, including the HKMA’s website, Bloomberg, and Refinitiv, by 3:00 pm on the tender day.

Bond Specifications

The bonds are issued under the stock code 4290 (HKGB 3.99 4503) and will be available for trading on the Stock Exchange of Hong Kong. The accrued interest for successful bidders, payable on the issue date, amounts to HK$918.25 per HK$50,000 denomination. The use of proceeds from these bonds is earmarked for infrastructure projects, aligning with the Infrastructure Bond Framework.

Market Context and Implications

This bond issuance comes amid ongoing global economic considerations, where government bonds continue to be a preferred choice for institutional investors seeking stable returns. The reopening of these bonds by the HKMA is a strategic move to support infrastructure development and investment in Hong Kong, reflecting the government's commitment to enhancing its economic landscape.

The HKMA's decision to issue these bonds underlines the importance of infrastructure investment in maintaining Hong Kong's competitive edge. With an interest rate environment that remains relatively stable, this offering is likely to attract significant interest from institutional investors.