HK launches $20b retail infrastructure bond

It will be available in lots priced at $10,000 and a tenor of three years.

The government launched the $20b retail infrastructure bond for Hong Kong residents as part of the Infrastructure Bond Programme.

It will be available in lots priced at $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 3.5%.

The Financial Services and the Treasury Bureau said proceeds will be credited to the Capital Works Reserve Fund for investment in infrastructure projects following the programme framework.

The subscription period will start at 9 am on 26 November and end at 2 pm on 6 December. Residents may apply through banks, securities brokers, or the Hong Kong Securities Clearing Company.

Subject to the subscription response, the government said it may increase the issuance size to a maximum of $25b.

The bond will be issued on 17 December and listed on the Hong Kong Stock Exchange the next day. It can be traded in the secondary market.