The Government today announced the launch of the eighth batch of its Silver Bond series, offering a minimum interest rate of 5%. Residents who turn 60 in or before 2024 and hold a valid Hong Kong identity card are eligible for subscription. 

The bond will be offered at $10,000 per unit with a tenor of three years. Interest will be paid once every six months.

At a press conference this morning, Monetary Authority Deputy Chief Executive Darryl Chan said: “Compared with last year, there are two major changes. First, the target issuance size will be increased from last year’s $35 billion to at least $50 billion this year. Depending on the situation, the Government may consider increasing it to a maximum of $55 billion.

“Second, the fixed rate, also known as the interest rate floor, will be increased from 4% to 5% this year.”

Mr Chan added: “An increase in the issuance size aims to promote greater participation by senior citizens. A higher fixed rate aims to benefit our senior citizens by enhancing the guaranteed return in this highly uncertain investment environment.”

Financial Secretary Paul Chan said demand for the bond, which has low risk and provides an attractive guaranteed interest rate, has continued to grow in tandem with Hong Kong’s increasingly aging society.

He added that the financial industry is the core driver of Hong Kong’s economic and commercial activities, and that the sector should also take into account the need to be inclusive, so as to better serve the public and society’s needs.

The subscription period will start from 9am on July 28 and end at 2pm on August 9. Eligible applicants may apply through any of 20 placing banks or 28 designated securities brokers. The bonds will be issued on August 18.