Hong Kong Business News

The Government announced today that the launch of a new batch of its Silver Bond, offering a minimum interest rate of 4.25%. 

The target issuance size of the Silver Bond is $50 billion, with each unit offered at $10,000 and a tenor of three years. Interest will be paid semi-annually.

Residents who turn 60 in or before 2027 and hold a valid Hong Kong identity card are eligible for subscription.

The bonds are the retail part of the Infrastructure Bond Programme. Proceeds will be credited to the Capital Works Reserve Fund for investment in infrastructure projects. The Government will publish information on the allocation of the proceeds on an annual basis.

Financial Secretary Paul Chan said that the 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,” Mr Chan said.

A maximum allocation of $1 million per investor is stipulated, meaning that each investor is allocated 100 units of retail bonds at most.

The subscription period will start from 9am on August 21 and end at 2pm on September 4, during which eligible residents can apply for the bonds through placing banks and designated securities brokers. The bonds will be issued on September 15.