Tender for re-opening of 15-year HKD HKSAR Institutional Government Bonds to be held on December 3
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announced today (November 27) that a tender of 15-year HKD institutional Government Bonds (Bonds) through the re-opening of existing 15-year Government Bond issue 15GB3912001 under the Infrastructure Bond Programme will be held on Wednesday, December 3, 2025, for settlement on Thursday, December 4, 2025.
An additional amount of HK$0.5 billion of the outstanding 15-year Bonds (issue no. 15GB3912001) will be on offer. The Bonds will mature on December 5, 2039, and will carry interest at the rate of 3.75 per cent per annum payable semi-annually in arrear. The Indicative Pricings of the Bonds on November 27, 2025, are 105.73 with an annualised yield of 3.265 per cent.
Tender is open only to Primary Dealers appointed under the Infrastructure Bond Programme. Anyone wishing to apply for the Bonds on offer can do so through any of the Primary Dealers on the latest published list, which can be obtained from the Hong Kong Government Bonds website at www.hkgb.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof.
Tender results will be published on the HKMA's website, the Hong Kong Government Bonds website, Bloomberg (GBHK <GO>) and Refinitiv (IBPGSBPINDEX). The publication time is expected to be no later than 3pm on the tender day.
HKSAR Institutional Government Bonds Tender Information
Tender information of 15-year HKD HKSAR Institutional Government Bonds:
Issue Number
:
15GB3912001
Stock Code
:
4287 (HKGB 3.75 3912)
Tender Date and Time
:
Wednesday, December 3, 2025
9.30am to 10.30am
Issue and Settlement Date
:
Thursday, December 4, 2025
Amount on Offer
:
HK$0.5 billion
Maturity
:
15 years
Remaining maturity
:
Approximately 14.01 years
Maturity Date
:
Monday, December 5, 2039
Interest Rate
:
3.75 per cent p.a. payable semi-annually in arrear
Interest Payment Dates
:
5 June and 5 December in each year, commencing on the Issue Date up to and including the Maturity Date, subject to adjustment in accordance with the terms of the Institutional Issuances Information Memorandum of the Infrastructure Bond Programme and Government Sustainable Bond Programme (Information Memorandum) published on the Hong Kong Government Bonds website.
Method of Tender
:
Competitive tender
Tender Amount
:
Each competitive tender must be for an amount of HK$50,000 or integral multiples thereof. Any tender applications for the Bonds must be submitted through a Primary Dealer on the latest published list.
The accrued interest to be paid by successful bidders on the issue date (December 4, 2025) for the tender amount is HK$934.93 per minimum denomination of HK$50,000.
(The accrued interest to be paid for tender amount exceeding HK$50,000 may not be exactly equal to the figures calculated from the accrued interest per minimum denomination of HK$50,000 due to rounding).
Other Details
:
Please see the Information Memorandum available on the Hong Kong Government Bonds website or approach Primary Dealers.
Expected commencement date of dealing on
the Stock Exchange
of Hong Kong Limited
:
The tender amount is fully fungible with the existing 15GB3912001 (Stock code: 4287) listed on the Stock Exchange of Hong Kong.
Use of Proceeds
:
The Bonds will be issued under the institutional part of the Infrastructure Bond Programme. Proceeds will be invested in infrastructure projects in accordance with the Infrastructure Bond Framework published on the Hong Kong Government Bonds website.
HKMA, Photo source: reference image
LegCo Secretariat releases Research Brief on "The 2026-2027 Budget"
The following is issued on behalf of the Legislative Council Secretariat:
The Financial Secretary (FS) presented the fourth Budget of the current-term Government on February 25. The Legislative Council Secretariat (the Secretariat) today (April 2) released a Research Brief on "The 2026-2027 Budget".
Supported by strong stock-trading stamp duty income and bond issuance, total government revenue soared by 21.9per cent year-on-year to HK$688.8 billion in the 2025-2026 fiscal year (see Annex 1). With a HK$2.9 billion surplus for the Consolidated Account, Hong Kong recorded a fiscal surplus for the first time after three consecutive years of deficits. While this arrived three years earlier than the Government projected, when excluding net bond proceeds, the underlying deficit remained at HK$100.4 billion. This equates to 3per cent of Gross Domestic Product (GDP), which is still below the average (4.6 per cent) of the 37 advanced economies tracked by the International Monetary Fund.
The Research Brief examined the Government's near-term fiscal position and the reinforced fiscal consolidation programme already implemented, as well as analysing the fiscal space for expanded bond issuance. The Research Brief pointed out that total public expenditure grew 5.4per cent to HK$844.2 billion. This is estimated to rise a further 7.2per cent to HK$904.7 billion in this fiscal year. Driven mainly by an ageing population, health and social welfare remain the largest spending areas, with infrastructure replacing education as the third-largest (see Annex 2). Over the past five years, infrastructure expenditure has surged by over 40 per cent. As Northern Metropolis-related (NM) projects are rolled out progressively, capital works expenditure is expected to average around HK$120 billion per annum over the next five years.
As part of the fiscal consolidation programme in the 2026-2027 fiscal year (see Annex 3), FS proposed transferring HK$150 billion of the Exchange Fund's (EF) investment income to finance the development of NM and other infrastructure projects. This withdrawal, which is the first in 42 years, has drawn considerable debate. Some argue that it could undermine the EF's capacity in preserving Hong Kong's financial stability, and question whether such a drawdown might become a "regular practice". Others, however, regard this proposal as an "innovative" measure that is "safer" than expanding bond issuance.
Meanwhile, FS also proposed raising the bond issuance ceiling from HK$700 billion to HK$900 billion, with a greater share of longer-term bonds. The Research Brief noted that concerns over the trajectory of government debt persist, given mounting repayment pressure on the bonds issued in recent years. Net bond proceeds are projected to be compressed by 43.3 per cent between 2026-2027 and 2030-2031 fiscal years, and the gross government-debt-to-GDP ratio is expected to increase to 19.9 per cent. However, this ratio remains far below the average of advanced economies (see Annex 4), and interest expenses amount to just 1.2per cent of government revenue. As reflected in a range of key financial indicators, Hong Kong's fiscal position remains resilient by international standards and its creditworthiness continues to rank among the strongest of any major advanced economy.
The Research Brief also suggested that as the Government moderates expenditure growth to restore fiscal balance, the recovery of the private sector will be key to sustaining economic growth momentum. To actively support and proactively align with the National 15th Five-Year Plan, Hong Kong is formulating the first-ever Five-Year Plan, which could provide a framework for sequencing public investment commitments alongside the fiscal consolidation timetable.
On long-term fiscal health, the Research Brief pointed out that population ageing, low fertility and the impact that AI will bring to the labour market could further strain public finances. Despite the pro-natalist measures introduced by the Government, registered births fell to a record low in 2025. The Research Brief compared the pro-natalist policies in Hong Kong with those in selected advanced economies in Asia and Europe, noting that effective responses require early, sustained and comprehensive intervention, rather than relying primarily on financial incentives. International experience points to facilitating workforce transition as crucial to safeguarding the tax base. As profits tax and salaries tax account for a large share of the Government's recurrent revenue, the ability to steer workforce towards high complementarity with AI has direct implications for the tax base. The Research Brief observed that the upgrading of the Employees Retraining Board into Upskill Hong Kong with a mandate to provide skill-based training, specifically incorporating AI applications, is a timely policy response.
The Legislative Council (LegCo) will resume the Second Reading debate on the Appropriation Bill 2026 at its meeting of April 22 and Members will speak on the Bill.
The Research Brief is prepared by the Secretariat's Research Office of the Research and Information Division with a view to enhancing information support for Members. The Research Brief is now available on LegCo website: app7.legco.gov.hk/rpdb/en/uploads/2026/RB/RB01_2026_20260402_en.pdf.
Source: AI-found images
