New Silver Bonds round the corner

Finance | Staff reporter 27 Nov 2020

The fifth batch of Silver Bonds will open for subscription by eligible Hong Kong residents from December 1, with a guaranteed interest rate of 3.5 percent, the Hong Kong Monetary Authority said yesterday.

The target issue size will be up to HK$10 billion and, subject to demand, it can be increased to a maximum of HK$15 billion at the discretion of the SAR government.

The bond will have a tenure of three years.

Bondholders will be paid interest once every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 3.5 percent.

Only applications from Hong Kong residents who turn 65 in or before 2021 and hold a Hong Kong identity card will be accepted.

The subscription period of the Silver Bond will start from 9am on December 1 and end at 2pm on December 11. The bond will be issued on December 22. Eligible applicants may apply for the bond through one of the 20 placing banks or 20 designated securities brokers.

In his budget speech earlier this year, Financial Secretary Paul Chan said that the government planned to issue inflation-linked retail bonds and Silver Bonds totaling not less than HK$13 billion in the fiscal year.

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