The Hong Kong Monetary Authority will reopen a 10-year HKD bond on June 24, 2026, offering an annual interest rate of 3.17% and raising an additional HK$1.25 billion under the government's Infrastructure Bond Programme. The re-opening, announced this week, adds to an existing benchmark that first came to market in an earlier tranche.
Bond re-opening details
The notes mature on the same date as the original series, giving investors a straight 10-year tenor from the initial issue. The HK$1.25 billion target is the same size as several prior re-openings under the programme. Settlement is set for the same day as the auction, with interest accruing from the last coupon payment date of the original bond.
The 3.17% coupon is fixed for the life of the instrument, paid semi-annually. At the re-opening price — typically set at or near par — the yield will closely match the coupon, though final pricing depends on bid levels at the auction.
Infrastructure Bond Programme purpose
The Infrastructure Bond Programme is a government initiative to channel domestic savings into long-term public works. Proceeds from this and similar issuances help fund roads, bridges, hospitals, and transport links across Hong Kong. The programme allows the government to borrow at competitive rates while giving local investors a safe, HK-dollar-denominated asset.
Since its inception, the programme has issued bonds across multiple maturities, with the 10-year being one of the most popular among banks, pension funds, and insurance companies. The HKMA acts as the government's agent in conducting the auctions and managing the debt.
Who can participate and how
Primary dealers — including major banks licensed by the HKMA — are the direct bidders in the auction. Individual investors can buy through their bank or broker, either at the auction price or in the secondary market afterward. The minimum subscription is typically HK$50,000, though dealers may set their own thresholds for retail clients.
The re-opening is part of the government's regular issuance calendar. The HKMA will publish the exact bid submission window and results on its website in the days before June 24. Investors should check with their financial institutions for application deadlines, which are usually a day or two before the auction.
The 3.17% rate is competitive against current bank time deposits and other low-risk instruments, especially in a stable-rate environment. For those looking to lock in a fixed return for a decade, this bond offers a straightforward option backed by the Hong Kong government.
