iBond to return with 2 percent minimum return

Business | 4 Oct 2020 4:32 pm

The next batch of iBond will guarantee a minimum return of two percent per annum – double than the previous threshold, Financial Secretary Paul Chan Mo-po says.
The Hong Kong Monetary Authority will hold a press conference today on the launching of iBond, whose return is linked to the city's inflation.
In his usual Sunday blog, Chan previewed that its minimum return has been enhanced to make the product more attractive.
Launched in 2011, iBond was last launched in 2016 covering a period of three years.
Chan said the enhancement will make iBond an attractive investment in the low-interest environment. The threshold makes sure investors will receive a return of two percent per annum even if the city enters a deflation.
Silver bonds targeting the elderly will be issued after iBond. Taken altogether, the two type of bonds will cost HK$13 billion.
Commentators expected the new batch will be well-received, as it is difficult to find a low-risk product with such returns recently.



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