Ted Hisokawa
Apr 22, 2026 10:59
HKMA issued 15-year HKSAR bonds with a 3.313% yield, drawing HK$4.46B in bids—4.46x the HK$1B offered, highlighting strong demand.
The Hong Kong Monetary Authority (HKMA) successfully concluded a tender for HK$1 billion worth of 15-year Hong Kong Special Administrative Region (HKSAR) institutional government bonds on April 22, 2026. The bonds, which were a re-opening of issue number 15GB3912001 under the Infrastructure Bond Programme, were met with robust demand, receiving HK$4.46 billion in applications—a bid-to-cover ratio of 4.46.
The bonds were sold at an average price of 105.06, translating to an annualized yield of 3.313%. The lowest accepted bid price was 104.76, corresponding to a yield of 3.340%. The bonds offer a fixed coupon rate of 3.75% per year, payable semi-annually, and will mature on December 5, 2039.
Compared to indicative pricing of 106.35 with a yield of 3.197% published on April 20, the tender results suggest slightly higher yields were accepted, reflecting participants’ pricing expectations amid prevailing market conditions. The pro-rata ratio for allotments was approximately 88%, meaning most bids received partial allocation.
These bonds are part of the HKMA’s ongoing efforts to fund critical infrastructure projects under the Infrastructure Bond Programme. Primary Dealers, the exclusive participants in these tenders, play a key role in distributing the bonds to institutional investors. The strong demand underscores sustained appetite for long-duration, high-grade fixed-income instruments in Hong Kong’s debt market.
The tender results come amid a broader reopening of HKSAR bond issues, including 5-year and 7-year tenors announced earlier this week. This strategy aims to deepen the market for Hong Kong dollar-denominated government bonds, providing investors with more options and enhancing liquidity in the secondary market.
For institutional investors, the 15-year bonds offer a compelling yield relative to other government debt instruments in the region. With a bid-to-cover ratio exceeding 4x, the auction reflects the continued confidence in HKSAR creditworthiness and the attractiveness of its sovereign debt, even as global interest rates remain volatile.
The bonds are set to settle on April 23, 2026, and will begin trading under the stock code 4287 (HKGB 3.75 3912). Investors looking for stable, long-term returns may find these bonds particularly appealing, especially given their secure backing by the HKSAR Government and the HKMA’s reputation for fiscal discipline.
Further details, including auction results and specifics of the bond program, are accessible on the HKMA and the Hong Kong Government Bonds websites, as well as through financial data platforms Bloomberg and Refinitiv.
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