Breaking News: HKMA Set to Launch 2-Year Exchange Fund Notes Tender – Here's What You Need to Know!

The Hong Kong Monetary Authority (HKMA) has thrillingly announced an upcoming tender for 2-year Exchange Fund Notes, scheduled for November 22, 2024! This significant move aims to effectively roll over an existing issue of notes that will mature on the same date, a strategic initiative in response to the evolving financial landscape.

Tender Highlights You Can't Miss!

The HKMA will be tendering a total of HK$1,200 million in these 2-year Notes. Notably, HK$5 million will be reserved for non-competitive tender bids, allowing the public easier access through the Hong Kong Securities Clearing Company Limited (HKSCC). If the non-competitive bids fall short, the unfilled amount will automatically be added to the competitive tender, which is initially set at HK$1,195 million. These notes will mature on November 25, 2026, boasting an attractive annual interest rate of 3.19%, which is paid out semi-annually. Given the current economic climate, this could be a golden opportunity for savvy investors!

How to Get Involved!

Participants keen on submitting non-competitive bids can easily do so through Stock Exchange Participants or Brokers, or directly via HKSCC if they hold Investor Accounts with the Central Clearing and Settlement System (CCASS). For those looking to make competitive bids, these must be submitted through any HKMA-appointed Eligible Market Makers. Remember, each tender needs to be made in increments of HK$50,000, applicable to both competitive and non-competitive submissions.

Stay Informed with Real-Time Results!

Wondering about the outcome of the tender? Results will be readily available on the HKMA's official website, as well as the Refinitiv screen (HKMAOOE) and Bloomberg. Non-competitive bidders can also check the results through their brokers or directly through the CCASS terminal, ensuring that everyone stays updated!

Plan Ahead – Trading Set to Begin!

For those eager to trade these new notes, anticipate that trading on the Stock Exchange of Hong Kong will kick off on November 26, 2024. This could be a perfect moment to strategize your investments and make a mark in the capital market arena!

For more details about the tender procedures and a list of Eligible Market Makers, be sure to visit the HKMA's official website or consult the Information Memorandum.

Don’t miss out on this rare chance to engage with Hong Kong’s robust financial instruments!