Govt To Launch IBond

The Government will launch the eighth batch of the inflation-linked retail bond (iBond) under the retail part of the Government Bond Programme for subscription by Hong Kong residents.

The target issuance size is $15 billion, increased from last year's $10 billion. The Government may increase the issuance size to a maximum of $20 billion depending on market conditions.

The bond 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%.

Financial Secretary Paul Chan said the iBond has been well received by citizens for providing a safe investment choice with a steady return.

He said the increase in issuance size will allow more citizens to participate in bond issuances, promoting the further development of the local retail bond market.

At a press conference this afternoon, Monetary Authority Executive Director Clara Chan said: “We are now launching the eighth batch of the iBond inflation-linked retail bond this year, with a view to providing a safe and attractive investment option to the general public, while at the same time furthering the development of the local bond market by enhancing the public's knowledge and interest in bond investment.”

The subscription period will start from 9am on June 1 and end at 2pm on June 11.

Ms Chan added that Hong Kong residents with a valid Hong Kong identity card may apply for the iBond through a placing bank, securities broker or the Hong Kong Securities Clearing Company.

The iBond will be issued on June 23 and listed on the Stock Exchange of Hong Kong on June 24.