Luisa Crawford
Aug 20, 2025 11:15
The Hong Kong Monetary Authority reported a strong response to the reopening of 20-year HKD HKSAR Government Bonds, with a bid-to-cover ratio of 4.96, indicating robust investor interest.
The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced the results of a successful tender for the reopening of 20-year HKD institutional government bonds. The tender, which took place on August 20, 2025, demonstrated high investor interest, as evidenced by a bid-to-cover ratio of 4.96, according to Hong Kong Monetary Authority.
Strong Demand for Long-Term Bonds
The tender involved the re-opening of existing government bonds under the Infrastructure Bond Programme, specifically issue number 20GB4503001. A total of HK$0.5 billion in bonds was offered, and the market responded with applications totaling HK$2.48175 billion. The average price accepted was 103.02, resulting in an annualized yield of 3.806%.
Details of the Bond Issue
The bonds, identified by stock code 4290 (HKGB 3.99 4503), are set for issue and settlement on August 21, 2025. They carry a coupon rate of 3.99% and are scheduled to mature on March 6, 2045. The lowest price accepted in the tender was 102.42, corresponding to a yield of 3.850%.
The pro-rata ratio for the allotment was approximately 46%, and the average tender price stood at 100.35, with a yield of 4.003%. These figures underscore the competitive nature of the tender process and the strong demand for long-term government securities in the current economic climate.
Implications for Hong Kong’s Financial Market
The strong demand for these long-term bonds reflects investor confidence in Hong Kong’s financial stability and its government’s fiscal policies. The robust response also highlights the attractiveness of Hong Kong government bonds in the global financial markets, offering competitive yields compared to other fixed-income securities.
The successful reopening of these bonds is part of the HKMA’s ongoing efforts to support infrastructure development through effective debt management strategies. By maintaining a diverse portfolio of government securities, Hong Kong continues to position itself as a resilient and attractive financial hub in the region.
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