Hong Kong to Auction 3-Year RMB Bonds Worth RMB1.25 Billion

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has declared an upcoming tender for 3-year RMB Institutional Government Bonds. Set to take place on Thursday, July 24, 2025, the auction will offer bonds totaling RMB1.25 billion, as part of the Infrastructure Bond Programme, according to the Hong Kong Monetary Authority.

Key Details of the Bond Issuance

The bonds, carrying an annual interest rate of 1.59%, will mature on July 28, 2028. Interest payments are scheduled semi-annually in arrear, specifically on January 28 and July 28 each year. Eligible bidders for this tender are limited to Primary Dealers appointed under the Infrastructure Bond Programme.

Applications for the bonds must be submitted through one of the Primary Dealers listed on the Hong Kong Government Bonds website. Each competitive tender must be in multiples of RMB50,000. The results of the tender will be disclosed on multiple platforms, including the HKMA’s website and Bloomberg, by 3:00 pm on the tender date.

Infrastructure Investment

Proceeds from this bond issuance are designated for infrastructure projects, in alignment with the Infrastructure Bond Framework. This strategic allocation underscores the government’s commitment to bolstering infrastructure development, enhancing economic growth, and fostering sustainable development within the region.

Market Implications

The issuance of these bonds is expected to attract significant attention from institutional investors, particularly given the stable interest rate environment and the robust demand for RMB-denominated assets. The HKMA’s initiative reflects a broader trend of leveraging government bonds to fund critical infrastructure projects, thus contributing to the region’s long-term economic stability.

Trading of the bonds on the Stock Exchange of Hong Kong Limited is anticipated to commence on Tuesday, July 29, 2025, providing investors with additional liquidity and investment opportunities.

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