The Hong Kong Monetary Authority successfully concluded a reopened tender of 5-year institutional government bonds on 12 August 2026, attracting robust investor demand as Hong Kong continues to fund infrastructure projects. The HKMAR, acting as representative of the Hong Kong Special Administrative Region Government, offered HK$1.75 billion in bonds but received applications totalling HK$8.143 billion, demonstrating strong appetite for Hong Kong-denominated fixed-income securities.
- Issue Number: 05GB3106001 (Re-open)
- Coupon Rate: 2.96%
- Maturity Date: 25 June 2031
- Amount Allotted: HK$1.75 billion
- Bid-to-Cover Ratio: 4.65
- Average Yield: 3.270%
The bid-to-cover ratio of 4.65 signals substantial oversubscription, with investors bidding for nearly five times the available bonds. The average price accepted was 98.73, translating to an annualised yield of 3.270%, while the lowest accepted price of 98.55 yielded 3.311%. The pro-rata allocation ratio reached approximately 22%, indicating that successful bidders received roughly one-fifth of their requested amounts due to excess demand.
The reopening of issue 05GB3106001 under the Infrastructure Bond Programme carries a 2.96% coupon and matures on 25 June 2031. Settlement occurred on 13 August 2026, following the tender date. The average tender price across all bids stood at 98.10, equivalent to a 3.416% yield, demonstrating the variance in bidding patterns across institutional participants.
The strong reception reflects investor confidence in Hong Kong’s credit profile and the appeal of the Infrastructure Bond Programme as a funding mechanism for the territory’s development projects. The tenor of the bond, falling between short and medium-term maturities, offers institutional investors an intermediate duration option within Hong Kong’s fixed-income market.
