HK$1.2 billion 2-year Exchange Fund Notes tender on May 22
The Hong Kong Monetary Authority will hold a tender for HK$1.2 billion of 2-year Exchange Fund Notes on May 22, 2026. These notes, carrying an interest rate of 2.52 percent, will settle on May 26, 2026, and mature on May 26, 2028.
Rolling over maturing debt
The Hong Kong Monetary Authority (HKMA) will offer HK$1,200 million in 2-year Exchange Fund Notes on May 22, 2026.
This tender is primarily intended to roll over an existing issue of 2-year Exchange Fund Notes that matures on the same day.
The notes, identified by Issue Number 02Y2805 and Stock Code 4111, will have a fixed interest rate of 2.52 percent per annum, payable semi-annually in arrears.
Settlement for the new notes is scheduled for May 26, 2026, with maturity occurring exactly two years later on May 26, 2028.
Trading on the Stock Exchange of Hong Kong is expected to commence on May 27, 2026.
A portion of the offering, specifically HK$5 million, is reserved for non-competitive bids from the public, while the remaining HK$1,195 million is allocated for competitive tenders.
Each bid, whether competitive or non-competitive, must be for a minimum amount of HK$50,000 or integral multiples thereof.
Participation and results
The tender offers both competitive and non-competitive bidding options.
Retail investors can submit non-competitive bids for the HK$5 million reserved portion through Hong Kong Securities Clearing Company Limited (HKSCC), Stock Exchange Participants/Brokers, or directly via their CCASS Investor Accounts.
For the larger HK$1,195 million competitive portion, applications must be submitted through Eligible Market Makers appointed by the HKMA.
The tender will be held on May 22, 2026, from 9:30 a.m. to 10:30 a.m.
Tender results will be published on the HKMA's website, Refinitiv, and Bloomberg, with non-competitive applicants also able to retrieve results via their submission channels.
Stability in a small package
This tender for Exchange Fund Notes represents a routine, yet crucial, operational activity for the HKMA.
By rolling over maturing debt, the authority ensures continuous liquidity management and maintains the stability of Hong Kong's financial system.
While not signaling new monetary policy, it provides a low-risk investment opportunity for both institutional and retail participants, reinforcing market confidence.