Timothy Morano
Dec 04, 2024 11:45
The Hong Kong Financial Authority reported robust demand for its 5-year HKD HKSAR Institutional Authorities Bonds, with a bid-to-cover ratio of three.24 and an annualized yield of three.179%.
The Hong Kong Financial Authority (HKMA) has introduced the outcomes of the latest tender for 5-year Hong Kong Greenback (HKD) HKSAR Institutional Authorities Bonds. Performing on behalf of the Hong Kong Particular Administrative Area Authorities, the HKMA held the tender on December 4, 2024, as a part of its Infrastructure Bond Programme.
Robust Demand for Bonds
The tender noticed vital curiosity, with functions totaling HK$9.734 billion towards an provided quantity of HK$3.0 billion. This resulted in a bid-to-cover ratio of three.24, indicating strong demand from institutional buyers. The common worth accepted for the bonds was 100.35, translating to an annualized yield of three.179%.
Particulars of the Challenge
The bonds, recognized by difficulty quantity 05GB2912001 and inventory code 4284 (HKGB 3.23 2912), have a coupon fee of three.23%. They’re set to be issued and settled on December 5, 2024, with a maturity date of December 5, 2029. The bottom worth accepted was 100.03, leading to a yield of three.249%, whereas the common tender worth was 99.15, equating to a yield of three.445%.
The professional-rata ratio, representing the proportion of bonds allotted to candidates, was roughly 32%.
Significance of the Outcomes
The profitable tender highlights the continued confidence in Hong Kong’s monetary stability and its attractiveness as a vacation spot for institutional funding. The aggressive yields provided by the bonds replicate favorable market circumstances and investor sentiment in direction of long-term authorities securities.
For extra particulars, go to the Hong Kong Financial Authority.
Picture supply: Shutterstock
