Government and Policy

HK's government bond issue over-subscribed

(Xinhua)
Updated: 2010-09-01 19:26

HONG KONG -- The tender for Hong Kong Special Administrative Region (HKSAR) government' two-year bonds was held Wednesday, with the HK$ 3.5 billion worth of bonds over subscribed by HK$9.39 billion, said the Hong Kong Monetary Authority (HKMA).

The HKMA, as representative of the HKSAR government, announced that the offering of the government bonds under the Institutional Bond Issuance Program attracted about HK$12.89 billion in bids, pushing the bid-to-cover ratio, which stands for the ratio of bonds applied for to bonds issued, to 3.68.

The average price accepted is 100.05, implying an annualized yield of 0.456 percent.

With the issue and settlement date set on September 2, 2010, the bonds mature in two years and have a coupon rate of 0.48 percent. The pro-rata ratio is about 78 percent. One U.S. dollar equals 7.8 HK dollars.