Government launches iBond
The Government announced today (May 19) the launch of the sixth inflation-linked retail bond, or iBond, under the retail part of the Government Bond Programme for subscription by Hong Kong residents. The issuance is an initiative announced by the Financial Secretary in his 2016-17 Budget to further develop the local bond market.
The maximum size of the sixth iBond will be $10 billion. It will have a tenor of three years. 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 May 31 and end at 2pm on June 8. Hong Kong residents may apply for iBond through a placing bank, securities broker or the Hong Kong Securities Clearing Company Limited.
iBond will be issued on June 20 and listed on the Stock Exchange of Hong Kong on the following business day (June 21). It can be traded in the secondary market afterward.
“Following the good responses of local residents towards previous iBond issuances, the Government introduces the sixth iBond to provide residents with an additional choice of investment and maintain the growth momentum of the local retail bond market through enhancing further the investing public’s 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