Tony Kim
Feb 06, 2026 09:03
Hong Kong Financial Authority publicizes 2-year Alternate Fund Notes tender providing HK$1.2 billion at 2.23% rate of interest, with settlement on February 23, 2026.
The Hong Kong Financial Authority will maintain a HK$1.2 billion tender for 2-year Alternate Fund Notes on February 20, 2026, rolling over a maturing subject of the identical tenor. The notes carry a set rate of interest of two.23% yearly, paid semi-annually, with settlement scheduled for February 23.
Of the whole providing, HK$1.195 billion has been allotted for aggressive tender by way of Eligible Market Makers, whereas HK$5 million stays out there for retail buyers through non-competitive bids by way of Hong Kong Securities Clearing Firm Restricted. Any undersubscribed retail portion can be added to the aggressive allocation.
The notes mature on February 23, 2028, and can commerce on the Inventory Alternate of Hong Kong beginning February 24, 2026, beneath inventory code 4108. Minimal tender quantities are set at HK$50,000 or multiples thereof for each aggressive and non-competitive members.
Yield and Pricing Context
On the said 2.23% coupon fee, the notes value close to par at roughly 100.02. The HKMA’s revealed value/yield desk exhibits pricing starting from 101.98 at a 1.23% yield all the way down to 98.13 at 3.23%, giving bidders a reference framework for aggressive submissions.
Alternate Fund Notes serve twin functions inside Hong Kong’s financial framework. Past functioning as funding devices, they kind a part of the Financial Base supporting the Linked Alternate Fee System that pegs the Hong Kong greenback to the US greenback. The Alternate Fund backing these notes held HK$4,151.4 billion in complete property as of December 31, 2025.
Market Participation
Retail buyers should submit non-competitive bids by way of Inventory Alternate Contributors or straight through CCASS Investor Accounts. Aggressive bidders are restricted to working by way of HKMA-appointed Eligible Market Makers listed on the authority’s web site.
Tender outcomes can be revealed on the HKMA web site, Refinitiv, and Bloomberg following the one-hour bidding window from 9:30 to 10:30 a.m. on February 20. The HKMA ceased issuing EFNs with tenors of three years or longer in 2015, making the 2-year notes the longest-dated common providing in this system.
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