HK$1.2 billion Exchange Fund Note tender opens August 21
The Hong Kong Monetary Authority will hold a tender for HK$1.2 billion in two-year Exchange Fund Notes on August 21, 2026, for settlement on August 24. The issue carries a 3.00 percent coupon to roll over maturing debt.
Public participation and competitive bidding
The HKMA offering consists of HK$1,200 million in total note value, designated to replace an expiring issue maturing on August 24, 2026.
Non-competitive tenders reserved for public subscription via Hong Kong Securities Clearing Company Limited account for HK$5 million, while competitive tenders via appointed Eligible Market Makers make up the remaining HK$1,195 million.
If the retail portion remains undersubscribed, any surplus will transfer automatically to the competitive portion.
Minimum application increments are fixed at HK$50,000 or integral multiples thereof across all bidding methods.
The notes carry a fixed coupon of 3.00 percent per annum payable semi-annually until final maturity on August 24, 2028.
Settlement timelines and exchange listing
Bidding takes place on Friday, August 21, 2026, between 9:30 a.m. and 10:30 a.m., followed by issue settlement on Monday, August 24. Results will publish on the HKMA portal, LSEG screens, and Bloomberg terminals, alongside HKSCC distribution channels for retail applicants.
Expected secondary market dealing on the Stock Exchange of Hong Kong commences on Tuesday, August 25, 2026, under stock code 4112. Coupon payments will occur on February 24 and August 24 each year through 2028.
Routine refinancing without market friction
This issuance is a routine debt rollover rather than a monetary policy shift.
Reserving a nominal HK$5 million for public bidding is a minor nod to retail participation in an institutionally dominated market.
Yields will remain strictly pegged to broader interest rate conditions without creating secondary market waves.