By Blockchain News | Created at 2026-08-13 21:47:46 | Updated at 2026-08-14 08:46:29
1 day ago
Ted Hisokawa Aug 12, 2026 10:22
HKMA to tender HK$1.2B 2-year Exchange Fund Notes on August 21, 2026, offering a 3.00% yield with settlement on August 24.
The Hong Kong Monetary Authority (HKMA) has announced a tender for HK$1.2 billion in 2-year Exchange Fund Notes (EFNs) scheduled for August 21, 2026. Settlement will occur on August 24, 2026, with the notes maturing on August 24, 2028. The EFNs, issued under Hong Kong's Exchange Fund, will offer a fixed interest rate of 3.00% per annum, payable semi-annually. This issuance rolls over a maturing 2-year EFN set to expire on the same date.
Out of the total HK$1.2 billion issuance, HK$5 million is reserved for non-competitive bids by retail investors. These applications can be submitted through Hong Kong Securities Clearing Company Limited (HKSCC) or via stock exchange participants and brokers. The remaining HK$1.195 billion will be open for competitive bidding through HKMA-appointed Eligible Market Makers. Both competitive and non-competitive bids must be submitted in increments of HK$50,000.
The tender process will take place between 9:30 a.m. and 10:30 a.m. on the designated date. Results will be published on the HKMA's website, Bloomberg, and the LSEG terminal. Non-competitive bidders can also access results through their brokers or directly via HKSCC's Central Clearing and Settlement System (CCASS).
This new issuance follows the HKMA’s recent tender of 2-year EFNs on May 22, 2026, which settled on May 26, 2026. That tender achieved an average price of HK$99.36 per HK$100 face value, translating to an average yield of 2.87%. The current offering, with its fixed 3.00% annual coupon, signals a slightly higher yield environment compared to earlier in the year.
2-year EFNs are a critical component of the HKMA's Exchange Fund Bills and Notes (EFBN) programme, which provides a benchmark yield curve for Hong Kong dollar-denominated debt. These instruments are highly liquid and play a key role in supporting money-market and debt-market operations in Hong Kong. Retail investors and institutional participants value the notes for their combination of stability and competitive yields relative to other short-term investment options.
Trading for the new EFNs is expected to commence on August 25, 2026, on the Stock Exchange of Hong Kong. Investors aiming to participate in the tender should consult the HKMA's website or approach their brokers for detailed application procedures.
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