Darius Baruo
Jan 29, 2026 11:01
HKMA proclaims February 4 tender for floating price notes tied to in a single day index common, with proceeds funding infrastructure initiatives.
The Hong Kong Financial Authority is tapping bond markets subsequent week with a HK$1.5 billion providing of floating price notes, giving institutional buyers publicity to town’s in a single day lending benchmark amid elevated rate of interest circumstances.
The tender, scheduled for February 4 with settlement the next day, will subject 1-year notes below Hong Kong’s Infrastructure Bond Programme. Curiosity funds are listed to HONIA—the Hong Kong Greenback In a single day Index Common—plus no matter unfold clears at public sale, paid quarterly.
Why HONIA Issues Proper Now
The timing is notable. Latest market information reveals deposit charges in Hong Kong exceeding 7%, pushing lending prices larger throughout the board. HONIA, which displays the precise price of in a single day unsecured interbank lending, has turn out to be more and more related as world markets shift away from LIBOR-style benchmarks towards transaction-based reference charges.
For context, HIBOR—Hong Kong’s conventional interbank price—surged throughout August 2025, creating volatility in floating-rate devices. HONIA-linked merchandise supply an alternate that tracks actual in a single day transactions slightly than financial institution submissions.
Tender Particulars
The notes carry inventory code 4200 and can mature February 5, 2027. Minimal tender measurement is HK$50,000, accessible solely by way of Major Sellers appointed below the programme. Curiosity is floored at zero no matter how HONIA strikes—a safety that issues if charges one way or the other turned unfavourable.
Quarterly curiosity funds fall on Could 7, August 7, November 9, and February 9, 2027. Buying and selling on the Hong Kong Inventory Trade begins February 6.
The place the Cash Goes
Proceeds feed instantly into infrastructure initiatives below the federal government’s revealed framework—a distinction from normal borrowing. This provides the issuance a particular use-of-proceeds mandate which will attraction to buyers with ESG or affect mandates.
Tender outcomes drop by 3:00 pm Hong Kong time on February 4, obtainable by way of Bloomberg (GBHK), Refinitiv, and the HKMA web site. With charges elevated and infrastructure spending in focus, demand indicators from this public sale will supply a learn on institutional urge for food for Hong Kong authorities credit score.
Picture supply: Shutterstock
