The Hong Kong Special Administrative Region (HKSAR) government will tender 3.5 billion HK dollars (US$448.7 million) of two-year government bonds on Sept. 2, the Hong Kong Monetary Authority said Monday.

It will be the first government bonds to be offered by the HKSAR government under the Institutional Bond Issuance Program. Settlement was scheduled for Sept. 3.

The bonds will mature on Sept. 5, 2011 and carry interest at the rate of 0.92 percent per annum payable semi-annually, the Monetary Authority said.

The Legislative Council of the HKSAR passed resolutions to authorize the Institutional Bond Issuance Program on July 8.

The Government Bond Program consists of Institutional Bond Issuance Program and Retail Bond Issuance Program.

The first tentative issuance schedule for the Institutional Bond Issuance Program, covering six months starting from September 2009, was published on Aug. 3.

(Xinhua News Agency August 25, 2009)