Hong Kong Monetary Authority Reports Tender Results for 1-Year HONIA-Indexed Floating Rate Notes

The
Hong
Kong
Monetary
Authority
(HKMA),
representing
the
Hong
Kong
Special
Administrative
Region
Government
(HKSAR
Government),
has
disclosed
the
results
of
the
tender
for
1-year
HONIA-indexed
Floating
Rate
Notes,
according
to
the
official

source.

Tender
Results
Overview

The
tender,
part
of
the
Institutional
Bond
Issuance
Programme,
saw
a
total
allocation
of
HK$1.5
billion
in
1-year
HONIA-indexed
Floating
Rate
Notes
(issue
number
01GH2508).
The
HKMA
reported
receiving
HK$6.840
billion
in
tender
applications,
resulting
in
a
bid-to-cover
ratio
of
4.56.
The
highest
spread
accepted
was
0.22%.

Details
of
the
Issuance

*

Calculated
as
the
amount
of
notes
applied
for
over
the
amount
of
notes
issued.

Market
Implications

The
successful
tender
of
the
1-year
HONIA-indexed
Floating
Rate
Notes
indicates
strong
demand
for
Hong
Kong
government
bonds.
With
a
bid-to-cover
ratio
of
4.56,
the
market’s
appetite
for
secure,
government-backed
financial
instruments
remains
robust.

This
issuance
aligns
with
the
HKMA’s
ongoing
efforts
to
maintain
a
stable
financial
environment
and
provide
diverse
investment
opportunities.
The
accepted
average
spread
of
0.17%
highlights
investor
confidence
in
the
stability
and
creditworthiness
of
the
HKSAR
Government.

The
HKMA
continues
to
play
a
crucial
role
in
managing
Hong
Kong’s
monetary
policy
and
financial
stability,
and
the
results
of
this
tender
further
underscore
the
institution’s
effectiveness
in
these
areas.

Image
source:
Shutterstock