As part of its $20 billion global bond offering, the government will offer two-year and four-year retail bonds to Hong Kong investors from July 9 to 16.
Details of the government bond offerings were released by book-runners HSBC, Standard Chartered Bank and Bank of China (Hong Kong) last night to representatives of the 450 stockbrokers and 23 placing banks and their 800 branches where subscriptions could be made.
A banker who attended the meeting said the bond would be issued in three tranches. Their sizes had yet to be determined.
The international institutional investor tranche would be denominated in US dollars. The Hong Kong portions for institutional and retail investors would be denominated in Hong Kong dollars.
The retail bonds would be issued in two-year and four-year spreads for investors who preferred short-term investments. No details were released on the institutional tranches. The bond prices, to be fixed at a premium to Exchange Fund Notes, will be set on July 21.
The placing syndicates are repeating the role they played in April when the government issued securitisation bonds worth $6 billion based on the income from Hong Kong's five tunnels and the Tsing Ma Bridge.
