Tender of 2-Year Exchange Fund Notes to be held on 22 May 2024

The Hong Kong Monetary Authority (HKMA) has announced that a tender for 2-year Exchange Fund Notes will take place on 22 May 2024, with settlement scheduled for 23 May 2024. This tender is intended to roll over an existing issue of 2-year Exchange Fund Notes that is set to mature on the same day. The total value of the 2-year Notes on offer is HK$1,200 million, with HK$5 million specifically allocated for non-competitive tender bids from members of the public through Hong Kong Securities Clearing Company Limited (HKSCC). In the event that the non-competitive tender bids are under-subscribed, the remaining amount will be added to the portion of notes available for competitive tender, initially set at HK$1,195 million. These Notes will mature on 26 May 2026 and will carry an interest rate of 3.77% per annum, payable semi-annually in arrears. For members of the public who wish to submit non-competitive tender applications for the Notes available through HKSCC, they can do so via Stock Exchange Participants/Brokers or directly through HKSCC if they hold Investor Accounts of the Central Clearing and Settlement System (CCASS) at HKSCC. Competitive tender applications, on the other hand, must be submitted through any of the Eligible Market Makers appointed by the HKMA, with the current list of appointed market makers available on the HKMA’s website. It is important to note that all tender applications, whether competitive or non-competitive, must be made for a minimum amount of HK$50,000 or integral multiples thereof. The results of the tender will be made available on the HKMA’s website, as well as on the Refinitiv screen (HKMAOOE) and Bloomberg. Applicants who submitted non-competitive tender bids through HKSCC can also obtain the tender results from Stock Exchange Participants/Brokers or through the CCASS terminal if they hold Investor Accounts at HKSCC’s CCASS, accessible to CCASS Broker/Custodian/Participants and CCASS Phone System users. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240510-4/