Silver Bond subscription to start
(July 15, 2016)
The Government will launch the First Silver Bond for subscription by Hong Kong residents aged 65 or above on July 26.Officiating at the launch ceremony today, Secretary for Financial Services & the Treasury Prof KC Chan said the issuance will provide an investment product with steady returns for senior residents and encourage financial institutions to tap into the immense potential of the silver market by introducing a wider spectrum of products.
The target issuance size of the first Silver Bond will be $3 billion.
It will have a tender of three years, and bond holders will be paid interest once every six months at the rate linked to the inflation of Hong Kong, subject to a minimum rate of 2%.
Unlike the iBond, the Silver Bond cannot be traded on the secondary market.
It carries a guaranteed yield of 2%, compared to 1% offered by the iBond.
The subscription period will start at 9am on July 26 and end at 2pm on August 3.
The bond will be issued on August 12.
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