Government launches iBond
The Government announced today (July 16) the launch of the fifth inflation-linked retail bond, or iBond, under the retail part of the Government Bond Programme for subscription by Hong Kong residents this month. The issuance is an initiative announced by the Financial Secretary in his 2015-16 Budget to further develop the local bond market.
The maximum size of the fifth iBond issuance will be $10 billion. It will have a tenor of three years and the bond holders will be paid interest once every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 1.00 per cent.
The subscription period of iBond will start from 9am on July 21 and end at 2pm on July 29. Hong Kong residents may apply for iBond through any of the placing banks, securities brokers or the Hong Kong Securities Clearing Company Limited.
iBond will be issued on August 7 and listed on the Stock Exchange of Hong Kong on the following business day (August 10). It can be traded in the secondary market afterward.
“Following the good responses of local residents towards previous iBond issuances, the Government introduces the fifth iBond issuance to provide residents with an additional choice of investment and to maintain the growth momentum of the local retail bond market through enhancing further the investing public’s awareness of and interest in bonds,” a Government spokesperson said.
Details of the offering terms and subscription arrangements of iBond are available at the Government Bond Programme’s website (www.hkgb.gov.hk).
ENDS