Government launches new batch of Silver Bond (with photos/video)
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The target issuance size of this batch of Silver Bond is HK$50 billion, with each unit offered at HK$10,000 and a tenor of three years. Interest will be paid semi-annually at a rate linked to inflation in Hong Kong, subject to a minimum of 3.85 per cent. The Government may exercise discretion to increase the target issuance size to a maximum of HK$55 billion from HK$50 billion, subject to market response. Hong Kong residents who turn 60 in or before 2026 (i.e. those born in 1966 or before) holding a valid Hong Kong Identity Card will be eligible for subscription.
The bonds are the retail part of the Infrastructure Bond Programme. Proceeds will be credited to the Capital Works Reserve Fund for investment in infrastructure projects in accordance with the Programme Framework. The Government will publish information on the allocation of the proceeds on an annual basis.
The Financial Secretary, Mr Paul Chan, said, "The Hong Kong Special Administrative Region Government continues to issue Silver Bond this year to provide a safe, reliable and low-risk investment option with steady returns for senior citizens. It further promotes financial inclusion and encourages financial institutions to tap into the immense potential of the silver market. Bond proceeds from this batch of Silver Bond will be used to fund the implementation of infrastructure projects for the good of the economy and people's livelihood, so as to support the sustained economic development of Hong Kong."
There will be no secondary market for Silver Bond. Bondholders may sell their bonds before maturity to the Government at par together with accrued but unpaid interest. To encourage greater participation from citizens, a maximum allocation of HK$1 million per investor is stipulated, meaning that each investor is allocated 100 units of retail bonds at most.
The subscription period of Silver Bond will start from 9am on September 15 and end at 2pm on September 29. The bonds will be issued on October 10. Eligible Hong Kong residents may apply for the bonds through one of the placing banks and designated securities brokers. The offering terms and subscription arrangements of Silver Bond, including the list of placing banks and designated securities brokers, will be available on the Hong Kong Government Bonds website (www.hkgb.gov.hk).
Ends/Friday, August 29, 2025
Issued at HKT 18:22
Issued at HKT 18:22
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