Hong Kong issues new round of iBonds to residents

The government today announced the launch of a new batch of inflation-linked retail bond, or iBond, for subscription by Hong Kong residents.

The target issuance size of the latest batch of the iBond is HK$15 billion but could increase the total issue to HK$20 million depending on popularity.

The bond will have a tenor of three years. Bond holders will be paid interest once every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 2 percent.

Hong Kong identity card holders will be able to subscribe in HK$10,000 increments at placing banks, securities brokers or the Hong Kong Securities Clearing Company beginning at 9am on June 1, according to the government.

The subscription period will run through 2pm on June 11, with the bonds being issued on June 23 and listed on the Hong Kong stock exchange the next day.

A spokesman of the Hong Kong Monetary Authority said the iBond will offer investors stable investment returns under the extremely low interest rate environment, attracting them to the bond market.