Hong Kong Monetary Authority to Issue 1-Year Floating Rate Notes Indexed to HONIA

The Hong Kong Monetary Authority (HKMA) has announced a tender for 1-year HONIA-indexed Floating Rate Notes as part of its Infrastructure Bond Programme. Scheduled for 13 August 2025, the tender will offer HK$1.5 billion in notes, with settlement on 14 August 2025, according to the HKMA’s official announcement.

Details of the Floating Rate Notes

The Floating Rate Notes will mature on 14 August 2026 and are designed to carry interest indexed to the Hong Kong Dollar Overnight Index Average (HONIA). Interest payments will be made quarterly in arrears. This initiative aims to enhance the financial infrastructure within the Hong Kong Special Administrative Region (HKSAR).

Primary Dealers appointed under the Infrastructure Bond Programme will be eligible to participate in the tender. Those interested in acquiring the Notes can apply through any Primary Dealer listed on the Hong Kong Government Bonds website. The minimum tender amount is set at HK$50,000 or its multiples.

Tender and Settlement Information

The tender will take place between 9:30 am and 10:30 am on the scheduled date. Results will be published on the HKMA’s website, the Hong Kong Government Bonds website, Bloomberg, and Refinitiv by 3:00 pm on the tender day.

The issue price is set at par, and the Notes will be issued under the institutional segment of the Infrastructure Bond Programme. Proceeds generated from the Notes will be invested in infrastructure projects, aligning with the framework provided by the Hong Kong Government Bonds.

Interest Rate Calculation

The interest rate for these Notes will be calculated based on the sum of the annualised compounded average of daily HONIA in each interest period and the highest accepted spread at tender, with a minimum interest floor of 0% per period. More detailed information on the interest rate calculation is available in the Institutional Issuances Information Memorandum of the Infrastructure Bond Programme.

For further information regarding the tender process, interested parties can refer to the Information Memorandum available on the Hong Kong Government Bonds website or contact Primary Dealers directly.

For more details, the official announcement can be accessed through the Hong Kong Monetary Authority.

Image source: Shutterstock