Hong Kong launches new silver bonds batch

Each bond is priced at $10,000.

The Hong Kong government has announced a new series of silver bonds for subscription, targeting a total issuance of $50b. 

Each bond is priced at $10,000, with a three-year term and semi-annual interest payments tied to inflation, with a minimum rate of four percent.

Eligibility is for Hong Kong residents aged 60 or older by the end of 2025 (born in 1965 or earlier) with a valid Hong Kong ID.

The bonds are part of the Infrastructure Bond Programme, with proceeds going to the Capital Works Reserve Fund for infrastructure projects. Annual updates on fund allocation will be provided.

Financial Secretary Paul Chan said that these bonds offer a low-risk investment for seniors and support infrastructure development, benefiting both the economy and public welfare.

The government plans to issue HK$50b in bonds this year, with a potential increase to $55b depending on market demand.

Silver bonds will not be traded on the secondary market but can be sold back to the government at face value plus accrued interest. Each investor can purchase up to $1m worth of bonds (100 units).

The subscription period runs from 9 a.m. on 30 September to 2 p.m. on 14 October, with bonds issued on 23 October. Applications can be made through designated banks and brokers.