HKMA to Hold Tender for 1-Year HONIA-Indexed Notes on November 12, 2025

The Hong Kong Monetary Authority (HKMA) has announced a tender for 1-year HONIA-indexed Floating Rate Notes, set to take place on Wednesday, November 12, 2025. This tender, part of the Infrastructure Bond Programme, is aimed at raising HK$1.5 billion, with the notes maturing on November 13, 2026, according to the official announcement.

Details of the Tender

The notes will be issued at par and will carry an interest rate indexed to the Hong Kong Dollar Overnight Index Average (HONIA), payable quarterly in arrears. The tender is exclusively open to Primary Dealers appointed under the Infrastructure Bond Programme, with each tender requiring a minimum amount of HK$50,000 or integral multiples thereof.

The tender results are expected to be published by 3:00 pm on the day of the tender through various channels, including the HKMA’s website, the Hong Kong Government Bonds website, Bloomberg, and Refinitiv.

Tender Specifications

The notes, identified by Issue Number 01GH2611001 and Stock Code 4296 (HKGB FRN 2611), will have the issue and settlement date on November 13, 2025. The interest payments are scheduled for February 20, May 15, August 17, and November 17, 2026, with the interest rate being the sum of the annualized compounded average of daily HONIA and the highest accepted spread at tender, subject to a minimum of 0% per interest period.

The proceeds from these notes will be channeled into infrastructure projects under the Institutional part of the Infrastructure Bond Programme, aligning with the Infrastructure Bond Framework available on the Hong Kong Government Bonds website.

Market Implications

The upcoming tender reflects the HKMA’s ongoing efforts to support infrastructure development in Hong Kong through strategic financial instruments. By linking the interest rate to the HONIA, the HKMA aims to offer a stable investment vehicle while addressing the financing needs for infrastructure projects.

Interested parties are encouraged to approach Primary Dealers for participation, with the dealing on the Stock Exchange of Hong Kong Limited expected to commence on November 14, 2025.

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