7th batch of Silver Bond announced

August 9, 2022

The Government today announced the launch of the seventh batch of Silver Bond for subscription by eligible citizens and pointed out that bond holders will be paid a minimum interest of 4% once every six months.


Outlining the subscription details at a press conference this afternoon, Monetary Authority Executive Director (Monetary Management) Clara Chan said: “Compared with last year, there are two major changes. First, the (target) issuance size will be increased from $30 billion last year to $35 billion this year. Depending on the situation, the Government may consider increasing it to a maximum of $45 billion.


“Second, the fixed rate, also known as the interest rate floor, will be increased from 3.5% last year to 4% this year.


“The tenor will be three years and each unit of Silver Bond has a principal amount of $10,000. Interest payments will be made every six months.”


Ms Chan explained that the bond will be open for subscription by citizens who turn 60 in or before 2023 and hold a valid Hong Kong identity card.


To prevent an over-concentration of holdings in retail bonds by a small number of investors, each applicant will be allocated at most 100 lots, regardless of the amount applied for, she added.


Noting that Silver Bond is a tool to encourage financial inclusion, Financial Secretary Paul Chan said: “It offers senior citizens a safe and reliable investment option with steady returns amid an uncertain investment environment.


“Both the target issuance size and the maximum issuance size, as well as the minimum interest rate of this issuance, are higher than those of our previous issuances, which would help promote greater participation by senior citizens.”


As there will be no secondary market for the bond, subscribers may sell their bonds before maturity to the Government at par together with the accrued but unpaid interest.


The subscription period will start from 9am on August 23 and end at 2pm on September 2. Eligible applicants may apply through one of the 20 placing banks and 27 designated securities brokers. The bond will be issued on September 14.

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