Silver Bonds worth $50b to be offered at 4.25% floor rate

Eligible residents can subscribe up to $1m under the three-year retail bond offer.

The government will launch a new batch of Silver Bonds with a target issuance size of $50b and a minimum interest rate of 4.25%, offering eligible residents a three-year retail investment option.

The government said in a statement on 6 August that each bond unit will be priced at $10,000, with interest paid every six months. The bonds will mature after three years, and each investor can subscribe for up to $1m, or 100 units.

The subscription period will run from 9 a.m. on 21 August to 2 p.m. on 4 September.

Residents who turn 60 in or before 2027 and hold a valid Hong Kong identity card can apply through placing banks and designated securities brokers. The bonds will be issued on 15 September.

The Silver Bonds are part of the Infrastructure Bond Programme, with proceeds allocated to the Capital Works Reserve Fund for infrastructure projects. The government will publish annual updates on the use of the proceeds.

Financial Secretary Paul Chan said the bonds provide senior citizens with a low-risk investment option, whilst supporting participation in the silver economy.

“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, whilst enabling citizens to participate in and benefit from the city's development,” Chan said.