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Following is the speech by the Secretary for Financial Services and the Treasury, Professor K C Chan, at the press conference on the launching of the inflation-linked retail bond today (May 28):
Today, I am very pleased to announce that the Government will launch the third inflation-linked retail bond, or iBond, under the retail part of the Government Bond Programme for subscription by Hong Kong residents in June this year.
Following the two iBond issuances in July 2011 and June 2012 with enthusiastic responses, the third iBond issuance aims to maintain the growth momentum of the local retail bond market through further enhancing the investing public's awareness of and interest in bonds.
This time, the maximum issuance size of iBond will again be HK$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 the inflation in Hong Kong, subject to a minimum rate of 1 per cent.
The subscription period of iBond will start from 9am on June 4 and end at 2pm on June 13.
Hong Kong residents may apply for iBond through the placing banks, securities brokers or the Hong Kong Securities Clearing Company Limited.
iBond will be issued on June 24 and listed on the Stock Exchange of Hong Kong on June 25.
We hope this launch will be another success in fostering development of the retail bond market in Hong Kong. Thank you.
Ends/Tuesday, May 28, 2013
Issued at HKT 15:49
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