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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announces today (April 30) that a switch tender under the Institutional Bond Issuance Programme will be held on May 14 (Wednesday) for settlement on May 15 (Thursday).
This switch tender will involve issue of 10-year Government Bonds through the re-opening of existing Government Bond issue 10GB2301 (Bonds) and early redemption of Government Bond issue 10GB2001.
An additional amount of HK$0.8 billion of the Bonds will be on offer. The Bonds will mature on January 17, 2023 and will carry interest at the rate of 1.10% per annum payable semi-annually in arrears. The Bonds Fixings on April 30, 2014 is 89.92 with an annualised yield of 2.404%. Successful bidders will additionally be required to deliver Government Bond issue 10GB2001 to the HKMA for early redemption at 105.87. The nominal value of Government Bond issue 10GB2001 to be delivered by a successful bidder shall equal to the nominal value of the Bonds allotted to the bidder at this switch tender.
Under the Institutional Bond Issuance Programme, tender is open only to Recognised Dealers which are appointed as Primary Dealers. Anyone wishing to apply for the Bonds on offer can do so through any of the Primary Dealers on the current published list, which can be obtained from the Government Bond Programme's website at www.hkgb.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof.
Tender results will be published on the HKMA's website, Government Bond Programme's website, the Reuters screen (HKGBINDEX), and Bloomberg (GBHK <GO>) not later than 3pm on the tender day.
HKSAR Government Institutional Bond Issuance Programme tender information
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Tender information of re-opening of 10-year Government Bonds under the Institutional Bond Issuance Programme:
Issue Number : 10GB2301 (Re-open)
Stock code : 4215 (HKGB 1.10 2301)
Tender Date and Time : May 14, 2014 (Wednesday)
9.30am to 10.30am
Issue and Settlement Date: May 15, 2014 (Thursday)
Amount on Offer : HK$0.8 billion
Maturity : 10 years
Remaining Maturity : Approximately 8.68 years
Maturity Date : January 17, 2023
Interest Rate : 1.10% p.a., payable
semi-annually in arrears
Interest Payment Dates : July 17, 2014
January 19, 2015
July 17, 2015
January 18, 2016
July 18, 2016
January 17,2017
July 17, 2017
January 17, 2018
July 17, 2018
January 17, 2019
July 17, 2019
January 17, 2020
July 17, 2020
January 18, 2021
July 19, 2021
January 17, 2022
July 18, 2022
January 17, 2023
Method of Tender : Competitive tender
(conducted as a switch
tender)
Bond for early redemption: 10GB2001
(Stock code: 4203)
Redemption Price : 105.87
Tender Amount : Each competitive tender
must be for an amount of
HK$50,000 or integral
multiples thereof. Any
tender applications for
the Bonds must be
submitted through a
Primary Dealer on the
current published list.
The accrued interest on
Government Bond issue
10GB2301 to be paid by
successful bidders on
the issue date
(May 15,2014) for the
allotted amount is
HK$177.81 per minimum
denomination of
HK$50,000.
The accrued interest on
Government Bond issue
10GB2001 to be received
by successful bidders on
the issue date
(May 15, 2014) for the
redeemed amount is
HK$489.67 per minimum
denomination of HK$50,000.
(The accrued interest to
be paid or received for
allotted or redeemed
amount exceeding HK$50,000
may not be exactly equal
to the figures calculated
from the accrued interest
per minimum denomination
of HK$50,000 due to
rounding).
Other details : Please see Information
Memorandum available on
the Government Bond
Programme's website at
www.hkgb.gov.hk or
approach Primary Dealers.
Expected commencement : The tender amount is
date of dealing on fully fungible with
the Stock Exchange the existing 10GB2301
of Hong Kong Limited (Stock code: 4215) listed
on the Stock Exchange of
Hong Kong.
Price/Yield Table of the new Government Bonds at tender for reference* only :-
Yield-to-Maturity Price Yield-to-Maturity Price
1.404 97.56 2.404 89.95
1.454 97.17 2.454 89.58
1.504 96.77 2.504 89.22
1.554 96.38 2.554 88.86
1.604 95.98 2.604 88.51
1.654 95.59 2.654 88.15
1.704 95.20 2.704 87.80
1.754 94.82 2.754 87.44
1.804 94.43 2.804 87.09
1.854 94.05 2.854 86.74
1.904 93.67 2.904 86.40
1.954 93.29 2.954 86.05
2.004 92.91 3.004 85.71
2.054 92.53 3.054 85.36
2.104 92.16 3.104 85.02
2.154 91.78 3.154 84.68
2.204 91.41 3.204 84.34
2.254 91.04 3.254 84.01
2.304 90.68 3.304 83.67
2.354 90.31 3.354 83.34
2.404 89.95 3.404 83.01
* Disclaimer
The information provided here is for reference only.
Although extreme care has been taken to ensure that
the information provided is accurate and up-to-date,
the HKMA does not warrant that all, or any part of,
the information provided is accurate in all respects.
You are encouraged to conduct your own enquiries to
verify any particular piece of information provided
on it. The HKMA shall not be liable for any loss or
damage suffered as a result of any use or reliance
on any of the information provided here.
Ends/Wednesday, April 30, 2014
Issued at HKT 18:03
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