Hong Kong Monetary Authority Schedules Tender for 2-Year Exchange Fund Notes

The Hong Kong Monetary Authority (HKMA) has announced a tender for 2-year Exchange Fund Notes, scheduled for August 22, 2025, with settlement set for August 25, 2025. This move is part of the HKMA’s routine operations to manage the maturity of existing notes, as noted in their published tentative issuance schedule.

Details of the Tender

The tender will offer a total of HK$1,200 million in notes, with HK$5 million allocated for non-competitive tender bids accessible to the public through the Hong Kong Securities Clearing Company Limited (HKSCC). Any unsubscribed amount from the non-competitive segment will be added to the competitive tender, initially set at HK$1,195 million. The notes, carrying an annual interest rate of 1.85%, will mature on August 25, 2027, with semi-annual interest payments.

Participation Guidelines

Public participants interested in non-competitive tenders can submit bids via Stock Exchange Participants/Brokers or directly through HKSCC for those with Investor Accounts at the Central Clearing and Settlement System (CCASS). Competitive tender bids must be submitted through HKMA’s Eligible Market Makers, whose current list is available on the HKMA’s website. Each tender must be for amounts of HK$50,000 or multiples thereof.

Publication of Results

The outcomes of the tender will be made available on the HKMA’s official website, Refinitiv screen (HKMAOOE), and Bloomberg. Non-competitive bidders through HKSCC can also access results via their Stock Exchange Participants/Brokers or directly through CCASS terminals and phone systems.

Additional Information

The issued notes will commence trading on the Stock Exchange of Hong Kong on August 26, 2025. The HKMA emphasizes that while all care is taken to ensure the accuracy of the information provided, individuals should verify details independently. The HKMA disclaims liability for any losses incurred from reliance on the information.

For more comprehensive details, interested parties can refer to the Information Memorandum or consult with Eligible Market Makers, HKSCC, or brokers who are exchange participants.

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