HKMA announces tender for HK$1.5 billion 1-year HONIA-indexed Notes
The Hong Kong Monetary Authority announced a tender for HK$1.5 billion of 1-year HONIA-indexed Floating Rate Notes. The tender will be held on Wednesday, February 4, 2026, with settlement on February 5, 2026.
Indexing to HONIA and quarterly payments
The Hong Kong Monetary Authority (HKMA) will tender HK$1.5 billion of 1-year HONIA-indexed Floating Rate Notes (Notes) under its Infrastructure Bond Programme.
These Notes, maturing on Friday, February 5, 2027, will carry an interest rate linked to the Hong Kong Dollar Overnight Index Average (HONIA).
Interest will be paid quarterly in arrear, calculated as the sum of the annualised compounded average of daily HONIA in each interest period and the highest accepted spread at tender, subject to a minimum of 0% per interest period.
The Notes will be issued at par.
Proceeds from this institutional issuance are designated for investment in infrastructure projects, in line with the Infrastructure Bond Framework.
Key interest period end dates are May 5, 2026, August 5, 2026, November 5, 2026, and February 5, 2027.
Tender open to Primary Dealers
The tender for the Notes is scheduled for Wednesday, February 4, 2026, from 9:30 am to 10:30 am, with settlement on February 5, 2026. Participation is restricted to Primary Dealers appointed under the Infrastructure Bond Programme.
All tender applications must be submitted through these Primary Dealers, with each bid set at HK$50,000 or integral multiples.
Tender results will be publicly available no later than 3:00 pm on the tender day, accessible on the HKMA's website and other financial data platforms.
Dealing on the Notes is expected to commence on Friday, February 6, 2026. Additional details are provided in the Information Memorandum.