HKMA Announces HK$0.75B Tender for 3-Year HKD Bonds on July 22

The Hong Kong Monetary Authority (HKMA) has announced the reopening of its 3-year HKD Institutional Government Bonds (Issue No. 05GB2912001) for a tender scheduled on Wednesday, July 22, 2026. The offering includes an additional HK$0.75 billion of this 5-year bond originally issued under the Infrastructure Bond Programme. Settlement will occur on July 23, 2026, and the bonds will mature on December 5, 2029, carrying an annual coupon rate of 3.23%, payable semi-annually.

The indicative pricing for the bonds as of July 16 stands at 100.72, translating to an annualized yield of 3.026%. The tender will be conducted via a competitive bidding process, open exclusively to Primary Dealers under the Infrastructure Bond Programme. Applications must be made in HK$50,000 denominations or multiples thereof. Successful bidders will pay accrued interest of HK$212.38 per HK$50,000 denomination on the issue date.

This tender marks a continuation of Hong Kong’s strategy to strengthen its fixed-income market and support infrastructure development. Institutional government bonds, issued under the Infrastructure Bond Programme and Government Sustainable Bond Programme, have been instrumental in funding public projects and establishing benchmark yield curves in the Hong Kong market. In April 2026, a similar 3-year re-opened HKD bond achieved a bid-to-cover ratio of 6.12, reflecting robust demand. More recently, on June 24, 2026, a 5-year bond tender saw an average accepted price of 99.52, implying a 3.089% yield and a bid-to-cover ratio of 3.97.

With HK$124.1 billion in outstanding institutional government bonds as of June 2026, these instruments are critical to Hong Kong’s fiscal strategy and its development as a global bond issuance hub. Earlier this year, the HKSAR Government raised HK$27.6 billion through green and infrastructure bonds, underlining its commitment to sustainable finance and infrastructure investment.

The results of the upcoming tender will be published by 3:00 PM on July 22 via the HKMA’s website, the Hong Kong Government Bonds website, Bloomberg, and Refinitiv platforms. For further details, market participants can refer to the Information Memorandum available on the Hong Kong Government Bonds website.

As Hong Kong continues to prioritize bond issuance as a cornerstone of its financial strategy, the strong institutional interest in these instruments underscores confidence in the region’s fiscal management and its role in advancing sustainable and infrastructure-driven growth.

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