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Government launches Silver Bond
     The Government announced today (June 1) the launch of a second batch of Silver Bond under the two-year Silver Bond Pilot Scheme for subscription by Hong Kong residents aged 65 or above.

     The target issuance size of the second batch of Silver Bond is HK$3 billion. It will have a tenor of three years. 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 2 per cent. Similar to the first batch of issuance, only applications from Hong Kong residents aged 65 or above holding a Hong Kong identity card will be accepted, and there will be no secondary market for Silver Bonds. Bond holders may sell their bonds before maturity to the Government at par together with accrued but unpaid interest.

      The subscription period of the Silver Bond will start from 9am on June 6 and end at 2pm on June 14. The Bond will be issued on June 23. Hong Kong residents aged 65 or above (i.e. those born in 1952 or before) may apply for the Bond through one of the 20 placing banks.

     The Financial Secretary announced in his 2017-18 Budget that the Government will issue a second batch of Silver Bond to further develop the local bond market.

     A government spokesperson said, "The issuance of Silver Bond is intended to provide an investment product with steady returns for senior citizens and encourage financial institutions to tap into the immense potential of this 'silver market' by introducing a wider spectrum of appropriate products. We will review the effectiveness of the Scheme upon on the completion of the Silver Bond Pilot Scheme."

     Details of the offering terms and subscription arrangements are available at the website (www.hkgb.gov.hk) of the Government Bond Programme.
Ends/Thursday, June 1, 2017
Issued at HKT 14:45
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