This issuance is the retail part of the infrastructure bond program, see #202682.
The target issuance size of the bond is HKD 20 billion; coupon rate linked to inflation in Hong Kong, subject to a minimum of 3.5%; tenor of the bond is three years.
The bond will be available for subscription only by Hong Kong residents.
Proceeds will be credited to the capital works reserve Fund for infrastructure projects.
HK GVT may exercise discretion to increase the issuance size up to HKD 25 billion.
The subscription period will start from Nov. 26, 2024 until Dec. 6, 2024.
HKEX
On the same day, HKEX issued circular to CCASS participants regarding the standard application form template for retail infrastructure bond 2024 (stock code 4286).
The form contains a set of information that CCASS clearing and custodian participants should collect from an investor making an application; no need to return to HKEX.
CCASS participants may email to request a copy of a retail infrastructure bond 2024 standard selling protocol document by Nov. 25, 2024.
Virtual Technical Briefing
HKMA will organise a virtual technical briefing on Nov. 20, 2024 to go through matters which CCASS participants; enrollment required to be submitted by Nov. 19, 2024.
Issue
The retail infrastructure bond will be issued on Dec. 17, 2024 and listed on the Hong Kong Stock Exchange the following day; it can be traded in the secondary market.
Regulators
HK Treasury; HKEX
Entity Types
B/D; Bank
Reference
Cir PT/NIS/CCASS/353/2024, PR, 11/15/2024
Functions
Compliance; Financial; Legal; Operations; Product Administration; Product Design; Training
