Government Announces New Silver Bond Batch

Stating in a press conference, the Monetary Authority has announced the issuance of a new batch of retail Silver Bonds for subscription. This will be the seventh edition of the bond; whereby successful holders will receive a minimum interest of up to 4% every six months, an increase from the previous fixed rate of 3.5%.

The scheme is targeted at senior citizens, as it offers a reliable form of investment with steady returns that are guaranteed amidst a volatile and uncertain market.

Executive Director of the Monetary Authority Clara Chan explains that “the (target) issuance size will be increased from HK$30 billion last year to HK$35 billion this year” and “depending on the situation, the Government may consider increasing it to a maximum of HK$45 billion.” The tenor will last three years, and each unit is required to begin with a principal amount of HK$10,000.

In order to prevent a small group of bond holders from dominating the batch, each applicant will only be allowed 100 lots maximum, and will not be able to turn it over to a secondary market. Investors who wish to release their bonds before maturity can sell them back to the government at par with the accumulated but unpaid interest.

Application period begins on Aug. 23 at 9 AM, with a deadline of 2 PM on Sept. 2. Eligible citizens can make their bids at one of the 20 placing banks or the 27 designated securities brokers. Successful applicants will receive their issuance on Sept. 14. More information is to be released on the official Government Bond site.