HKMA announces results for 3-year RMB bond tender
The Hong Kong Monetary Authority announced the results for its tender of RMB1.25 billion in 3-year institutional Government Bonds. The tender received RMB10.940 billion in applications, resulting in a bid-to-cover ratio of 8.75.
Strong demand for 3-year RMB bonds
The Hong Kong Monetary Authority (HKMA) today announced the results of its tender for 3-year RMB institutional Government Bonds.
This tender involved the re-opening of an existing Government Bond (issue number 03GB2807001) under the Infrastructure Bond Programme.
A total of RMB1.25 billion in 3-year Government Bonds were offered.
The tender attracted substantial demand, with total applications amounting to RMB10.940 billion.
This resulted in a bid-to-cover ratio of 8.75, reflecting the ratio of bonds applied for to the amount issued.
The average price accepted for the bonds was 99.56, corresponding to an annualised yield of 1.778 percent.
The lowest price accepted was 99.51, which implied an annualised yield of 1.798 percent.
The average tender price, encompassing all bids, was 99.33, with an implied yield of 1.874 percent.
Successful bids were allotted approximately 60 percent of their tendered amount based on the pro-rata ratio.
Fixed coupon, stable yield
The 3-year Government Bonds tendered today will have an issue and settlement date of January 19, 2026.
These bonds carry a fixed coupon rate of 1.59 percent.
Their maturity date is set for July 28, 2028.
The re-opening of this specific bond, identified by stock code 85039 (HKGB1.59 2807-R), allows for the issuance of additional debt under existing terms.
The Infrastructure Bond Programme facilitates the HKSAR Government's funding for public works projects.
The tender process ensures market-based pricing for government debt, contributing to the development of the local bond market.