HKMA Announces Tender for 2-Year Exchange Fund Notes
The Hong Kong Monetary Authority (HKMA) has recently unveiled plans for an upcoming tender for 2-year Exchange Fund Notes, scheduled to take place on November 22, 2024. This tender, which is slated for settlement on November 25, 2024, serves the purpose of rolling over an existing issue of notes maturing on the same day. The HKMA’s decision comes amid growing interest in the cryptocurrency and blockchain space, with investors seeking diverse investment opportunities to diversify their portfolios.
Tender Details
A total of HK$1,200 million worth of 2-year Notes will be made available during the tender, with HK$5 million reserved for non-competitive bids accessible to the public through the Hong Kong Securities Clearing Company Limited (HKSCC). In the event that the non-competitive portion remains undersubscribed, the amount will be added to the competitive tender, initially set at HK$1,195 million. These notes, with a maturity date of November 25, 2026, offer a competitive annual interest rate of 3.19%, paid out semi-annually.
Participation and Submission Process
Interested individuals looking to submit non-competitive bids can do so through Stock Exchange Participants or Brokers, or directly through HKSCC for those with Investor Accounts under the Central Clearing and Settlement System (CCASS). Meanwhile, competitive bids must be channeled through any of the HKMA-appointed Eligible Market Makers. Each tender submission must adhere to increments of HK$50,000, applicable to both competitive and non-competitive bids.
Publication of Results
Following the tender process, the results will be made accessible on the HKMA’s official website, the Refinitiv screen (HKMAOOE), and Bloomberg. Individuals who submit non-competitive bids via HKSCC can also obtain the results through their brokers or directly via the CCASS terminal.
Additional Information
For comprehensive details regarding the tender, such as the list of Eligible Market Makers, interested parties are encouraged to visit the HKMA’s official website or refer to the Information Memorandum. Trading on the Stock Exchange of Hong Kong is anticipated to commence on November 26, 2024, providing investors with a valuable opportunity to explore the financial landscape and potentially enhance their investment portfolios.
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