Government launches new batch of Silver Bond
The Government announced today (August 6) the launch of a new batch of Silver Bond for subscription by eligible Hong Kong residents.
The target issuance size of this batch of Silver Bond is HK$50billion, with each unit offered at HK$10,000 and a tenor of three years. Interest will be paid semi-annually at a rate linked to inflation in Hong Kong, subject to a minimum of 4.25 per cent. The Government may exercise discretion to increase the target issuance size to a maximum of HK$55 billion from HK$50 billion, subject to market response. Hong Kong residents who turn 60 in or before 2027 (i.e. those born in 1967 or before) holding a valid Hong Kong Identity Card will be eligible for subscription.
The bonds are offered under the retail part of the Infrastructure Bond Programme. Proceeds will be credited to the Capital Works Reserve Fund for investment in infrastructure projects in accordance with the Infrastructure Bond Framework. The Government will provide information on the allocation of the proceeds in the relevant Infrastructure Bond Reports.
The Financial Secretary, Mr Paul Chan, said, "The Hong Kong Special Administrative Region Government continues to issue Silver Bond this year, offering senior citizens a safe, steady and low-risk investment option while encouraging the financial sector to tap into the business potential of the silver economy. Issued under the Infrastructure Bond Programme, proceeds from this batch of Silver Bond will be used to fund public works projects to push ahead Hong Kong's infrastructure and urban development, enhancing people's quality of life while enabling citizens to participate in and benefit from the city's development."
There will be no secondary market for Silver Bond. Bondholders may sell their bonds before maturity to the Government at par together with accrued but unpaid interest. To encourage greater participation from citizens, a maximum allocation of HK$1 million per investor is stipulated, meaning that each investor is allocated 100 units of retail bonds at most.
The subscription period of Silver Bond will start from 9am on August 21 and end at 2pm on September 4. The bonds will be issued on September 15. Eligible Hong Kong residents may apply for the bonds through one of the placing banks and designated securities brokers. The offering terms and subscription arrangements of Silver Bond, including the list of placing banks and designated securities brokers, will be available on the Hong Kong Government Bonds website (www.hkgb.gov.hk).
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, announced today (August 6) the launch of a new batch of Silver Bond by the Government for subscription by eligible Hong Kong residents. Source: HKSAR Government Press Releases
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, today (August 6) hosted a press conference on the launch of Silver Bond. Photo shows Mr Hui (centre); Deputy Chief Executive of the Hong Kong Monetary Authority Mr Darryl Chan (second left); the Principal Assistant Secretary (Project Capability and Strategy), Development Bureau, Mr Frankie Fung (first left); the Head of Markets and Securities Services, Hong Kong of the Hongkong and Shanghai Banking Corporation Limited, Mr Cheuk Wong (second right); and the General Manager, Personal Banking Product Department, the Bank of China (Hong Kong), Mr Arnold Chow (first right). Source: HKSAR Government Press Releases
