Hong Kong launches silver bonds with 3.85% annual return

It has a target issuance size of $50b.

The government has announced a new issuance of silver bonds, aimed at providing senior citizens with a low-risk investment option.

The bonds will offer a minimum interest rate of 3.85% per annum, with interest payments made every six months over a three-year tenor.

The latest offering, part of the Government’s Infrastructure Bond Programme, has a target issuance size of $50b. Each bond unit is priced at $10,000, with a maximum allocation of $1m per eligible investor—equivalent to 100 units.

Hong Kong residents born in 1966 or earlier who hold a valid Hong Kong identity card are eligible to subscribe.

The subscription period will run from 9am on 15 September to 2pm on 29 September. Applications can be made through placing banks or designated securities brokers. The bonds are scheduled to be issued on 10 October.