The Hong Kong Monetary Authority (HKMA) will offer HK$1.2 billion in two-year Exchange Fund Notes on Nov. 24, replacing a maturing issue with new notes carrying a 3.48% annual rate.
Settlement is set for Nov. 25, which is also the due date of the earlier two-year notes, according to the HKMA. The new security, numbered 02Y2811, matures on Nov. 27, 2028.
Interest is paid semiannually in arrears. The HKMA lists payment dates of May 25 and Nov. 25, 2027, May 25, 2028, and Nov. 27, 2028, when the notes mature.
Up to HK$5 million is available for public noncompetitive bids. The competitive portion starts at HK$1.195 billion; any unused amount from the noncompetitive allocation will be added to it.
Public noncompetitive applications may go through stock exchange participants or brokers. Eligible holders of Investor Accounts in the Central Clearing and Settlement System may also apply directly through Hong Kong Securities Clearing Company Limited. Competitive bids must be submitted through an HKMA-appointed Eligible Market Maker, and each tender must be for HK$50,000 or a multiple of that amount.
The HKMA describes its Exchange Fund Bills and Notes as Hong Kong dollar instruments that investors and banks can trade, hold as investments or use for liquidity management. The earlier two-year issue being replaced was offered in November 2024 with a 3.19% annual rate.
Trading is expected to begin on the Stock Exchange of Hong Kong on Nov. 26. The HKMA plans to publish the tender results on its website, the LSEG HKMAOOE screen and Bloomberg.
