Hong Kong allotted HK$1.25 billion of reopened infrastructure bonds on Oct. 21 at an average accepted annualized yield of 4.164%, up from the 3.580% average accepted yield at its August reopening.
The Hong Kong Monetary Authority (HKMA) conducted the tender for the Hong Kong Special Administrative Region government. Applications totaled HK$4.030 billion, or 3.22 times the amount allotted.
That ratio was lower than at the Aug. 12 reopening, when applications reached 5.49 times the HK$1.0 billion allotted. The bid-to-cover ratio compares the amount sought by bidders with the amount allotted.
The Oct. 21 tender’s average accepted price was 93.06. The lowest accepted price was 92.74, equivalent to a 4.211% annualized yield. The HKMA also reported an approximate pro-rata ratio of 37%.
The authority’s Oct. 14 tender notice gave an indicative price of 94.28 and an annualized yield of 3.986% as of that date. Those figures preceded the tender and were separate from its results.
The bond, issue 10GB3507001 and stock code 4294, pays a 3.17% annual coupon in two installments each year. It matures July 24, 2035, and had approximately 8.76 years remaining when the HKMA announced the reopening.
The bond was first issued July 24, 2025. That tender allotted HK$2.0 billion at a 3.144% average accepted annualized yield. The October tender added to the existing issue, which the HKMA describes as a 10-year bond.
Under the government’s Infrastructure Bond Framework, proceeds are reserved for qualifying Capital Works Programme projects, including refinancing. Only dealers appointed under the bond program could submit bids directly.
The scheduled issue and settlement date is Thursday, Oct. 22.
